Munich Personal RePEc Archive

High tech foreign direct investment and its impact on economic development

Marasco, Antonio (2002): High tech foreign direct investment and its impact on economic development.

[img]
Preview
PDF
MPRA_paper_5390.pdf

Download (114kB) | Preview

Abstract

Recent empirical studies concerning the impact of foreign direct investment (FDI) on economic development have all been taking into account FDI as a whole. However, the theoretical literature on the topic argues that more attention should be devoted to distinguishing FDI by type, and suggests that FDI with high technological content might play a peculiar role. This paper investigates the existence and the magnitude of this peculiar effect. With reference to developing countries, we find strong evidence that countries with a larger population and a larger stock of human capital, and countries that enjoy lesser uncertainty, are able to attract more FDI with a higher technological content. We also find evidence pointing towards a positive relationship between the share of technology embodied into FDI and the level of economic development in the host country.

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.