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Friday, 10 May 2013 10:00

An Endogenous Growth Model for Technology Transfer through Foreign Direct Investment from DCS to LDC

 Asghar Jabal Barezi, Qeshm Voltage Company, Tehran. Iran

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 Amir Nasser Akhavan, Department of petroleum Engineering, Amirkabir University of Technology, Tehran, Iran,

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 M. Hamdi Bin Abd Shukor, Faculty of Engineering, University of Malaya, Kuala Lumpur, Malaysia,

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 Nooshin Jabbari, Islamic Azad University and Centre for Study of Technology Development, Amirkabir University of Technology, Tehran, Iran

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 Keywords: Model for Technology Transfer; Foreign Direct Investment

 Less Developed Countries; developed countries

 

Abstract

 

This paper develops an endogenous growth model where a Less Developed Countries (LDCs) through Foreign Direct Investment (FDI) and licensing. The model assumes that knowledge of DCs spills over to the LDC from licensing but not from FDI. It is found that the LDC relies on either FDI or licensing the decentralized equilibrium. However, due to knowledge spillovers from licensing encouraging licensing and regulation FDI will improve the welfare of a LDC, if his population size or its capacity to absorb knowledge of DCs is sufficiently large.

 

f Development Economics, 62, pp. 447-93

 

Read 2249 times Last modified on Sunday, 01 September 2013 07:36