Total factor productivity and technology spillovers in Egypt

Abstract

The main objective of this paper is to estimate the impact of R&D spillovers from 16 countries on Egypt’ domestic productivity at the industry level over the period from 2003 to 2008. Most of the existing literature is concerned with one or two channels of technology spillovers. This analysis will thereby contribute further understanding of the estimable impact of R&D spillovers from various channels of spillovers – namely, import, export, inward FDI and outward FDI. The results prove that foreign direct investments are more important channels of transmitting technology than trade.