Linked-in by FDI: The Role of Firm-Level Relationships for Knowledge Transfers in Africa and Asia
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Linked-in by FDI : The Role of Firm-Level Relationships for Knowledge Transfers in Africa and Asia. / Newman, Carol; Page, John; Rand, John; Shimeles, Abebe; Söderbom, Måns; Tarp, Finn.
In: The Journal of Development Studies, Vol. 56, No. 3, 2020, p. 451-468.Research output: Contribution to journal › Journal article › Research › peer-review
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TY - JOUR
T1 - Linked-in by FDI
T2 - The Role of Firm-Level Relationships for Knowledge Transfers in Africa and Asia
AU - Newman, Carol
AU - Page, John
AU - Rand, John
AU - Shimeles, Abebe
AU - Söderbom, Måns
AU - Tarp, Finn
PY - 2020
Y1 - 2020
N2 - This study combines evidence from interviews in seven countries with (i) government institutions responsible for attracting Foreign Direct Investment (FDI), (ii) 102 multinationals (MNEs), and (iii) 226 domestic firms linked to these foreign affiliates as suppliers, customers, or competitors, to identify whether relations between MNEs and domestic firms lead to direct transfers of knowledge/technology. We first document that there are relatively few linkages between MNEs and domestic firms in sub-Saharan Africa compared with Asia. However, when linkages are present in sub-Saharan Africa they raise the likelihood of direct knowledge/technology transfers from MNEs to domestic firms as compared to linked-in firms in Asia. Finally, we do not find that direct knowledge/technology transfers are more likely to occur through FDI than through trade. As such our results are not consistent with the view that tacit knowledge transfers are more likely to occur through localised linkages.
AB - This study combines evidence from interviews in seven countries with (i) government institutions responsible for attracting Foreign Direct Investment (FDI), (ii) 102 multinationals (MNEs), and (iii) 226 domestic firms linked to these foreign affiliates as suppliers, customers, or competitors, to identify whether relations between MNEs and domestic firms lead to direct transfers of knowledge/technology. We first document that there are relatively few linkages between MNEs and domestic firms in sub-Saharan Africa compared with Asia. However, when linkages are present in sub-Saharan Africa they raise the likelihood of direct knowledge/technology transfers from MNEs to domestic firms as compared to linked-in firms in Asia. Finally, we do not find that direct knowledge/technology transfers are more likely to occur through FDI than through trade. As such our results are not consistent with the view that tacit knowledge transfers are more likely to occur through localised linkages.
U2 - 10.1080/00220388.2019.1585813
DO - 10.1080/00220388.2019.1585813
M3 - Journal article
VL - 56
SP - 451
EP - 468
JO - Journal of Development Studies
JF - Journal of Development Studies
SN - 0022-0388
IS - 3
ER -
ID: 218475052