Multinational firms and technology transfer Glass, Amy Jocelyn; Saggi, Kamal

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Authors
Glass, Amy Jocelyn ; Saggi, Kamal
Appears In
Scandinavian Journal of Economics
Subjects
Investments, Foreign - Developing countries - Econometric models.; Technology transfer -- Research; Technology application
Audience
Trade
Summary
We construct an oligopoly model in which a multinational firm has a superior technology compared to local firms. Workers employed by the multinational acquire knowledge of its superior technology. The multinational may pay a wage premium to prevent local firms from hiring its workers and thus gaining access to their knowledge. In this setting, the host government has an incentive to attract FDI due to technology transfer to local firms or the wage premium earned by employees of the multinational firm. However, when FDI is particularly attractive to the multinational firm, the host government has an incentive to discourage FDI. Keywords: Multinational firms; technology transfer; wages JEL classification: F13; F23; J41; L13; O14; O33; O38
Bookmark
http://trove.nla.gov.au/work/108743
Work ID
108743

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