Abstract
This paper examines different channels of global technology transfer to transition countries. We study the impact of direct technology transfer through FDI, intra-industry knowledge spillovers from FDI, firm’s own R&D accumulation and R&D spillovers through trade for total factor productivity (TFP) growth of local firms. Using firm-level data for eight transition countries for the period 1994–1998, we found that technology is being primarily transferred to local firms through direct foreign linkages. Our results also suggest that FDI do not generate positive intra-industry spillovers for domestic firms.
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