Do foreign investment and trade spur innovation?
Abstract
Using large firm-level and industry-level data sets from eighteen countries, we find that foreign direct investment (FDI) and trade have positive spillover effects on product and technology innovation by domestic firms in emerging markets. The FDI effect is more pronounced for firms from advanced economies. However, while we detect the spillover effects with micro data at the firm-level, when we use linkage variables computed from input-output...
Paper Details
Title
Do foreign investment and trade spur innovation?
Published Date
Jan 1, 2020
Journal
Volume
121
Pages
103343 - 103343
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