International Technology Transfer Research Articles

International legal regulation of the conclusion of agreements on the transfer of technologies and the protection of intellectual property rights during the international transfer of technologies

The article is devoted to the study of international legal regulation of the conclusion of agreements on the transfer of technologies and the protection of intellectual property rights during the international transfer of technologies. The focus is on the activities of international state organizations of the UN system (there is studied the source base of the Body of the UN General Assembly – UNCTAD, the UN Economic Commission for Europe – UNECE, the UN Commission on International Trade Rights – UNCITRAL, special attention is paid to the activities in the development of various aspects of technology transfer of the World IntellectualProperty Organization – WIPO; the main aspects of technology transfer of the TRIPS Agreement of the World Trade Organization – WTO are being defined, as well as the ones of the documents of other international organizations in this field: the World Bank, the International Federation of Consulting Engineers – FIDIC, the European Development Fund. In particular, the author examines main principles and characteristic features of the key documents of these international organizations, as well as approaches to the regulation of certain aspects of technology transfer in international law, that have changed over time.

Exploring the interplay between intellectual property models and sustainability transitions: A multi‐level analysis

AbstractResearch on international technology transfer and partnership agreements provides a comprehensive understanding of country‐level impacts of intellectual property (IP) rights on sustainability transitions. However, firm‐level studies on how firms use and share their IP to support sustainability practices remains limited. The paper disentangles the relationship between firm‐level IP models and sustainability practices drawing from a cross‐case analysis of 28 firms offering sustainable innovations across four sectors. Analysis of firms' year‐wise data collected from 854 documents (typically 1996–2021) and 58 in‐depth interviews exploring linkage between IP models and sustainability practices of firms engaged in sustainable innovation provide six key findings: (a) emphasis on safeguarding registered and unregistered IP assets among firms with sustainable innovations; (b) widespread adoption of selectively open inbound IP models coupled with diverse IP sharing mechanisms; (c) a preference for collaborative (joint) IP ownership among internally driven firms, contrasting with a tendency for exclusive in‐licensing among those reacting to external pressures; (d) a divergence in outbound IP models, with internally motivated firms favouring selectively open approaches and externally driven firms favouring closed IP models; (e) the adoption of fully open outbound IP models democratize sustainable innovation diffusion; and (f) leveraging broadly open outbound IP models alongside closed or selectively open models balances widespread use with access control and achieves significant social sustainability. A framework is hence developed to guide technology‐sharing policies and procedures. Therefore, the paper creates a platform for prescribing sustainable IP incentives for encouraging firms to share IP for wider diffusion of sustainable innovations.

Application and Impact of the Provisions on Technology Transfer in the Regional Agreement

In the context of the lagging legislation of international technology transfer and the lack of unified regulation, the WTO cannot effectively use the dispute settlement mechanism to resolve the related contradictions arising from technology transfer. Signing regional trade agreements has gradually become the main means to regulate and promote technology transfer. However, the developing countries that rely on "market for technology" are often in a passive position, facing the difficulties of signing regional clauses caused by the technology transfer barriers of developed countries and the imperfect means of technology circulation and protection of developing countries, and urgently need to put forward their own countermeasures. In particular, China needs to innovate the domestic technology transfer system through the standard regional trade agreement rules to help our country maintain a good regional trade partnership. By clarifying the application conditions and effects of regional trade agreements, this paper proposes to improve the universality of regional trade agreements from the perspective of international formulation of uniform regulations.

Industrial collaborative agglomeration and green economic efficiency—Based on the intermediary effect of technical change

AbstractIndustry upgrading and structure transformation are important methods for the green and sustainable development. This paper utilizes urban panel data from China spanning the years 2009–2022 to investigate the impact of manufacturing and producer services collaborative agglomeration on green economy efficiency. Additionally, it examines the mediating effect of three modes of technical change: domestic technological stock, international technology transfer, and innovation absorptive capacity. The key findings are summarized as follows: (1) The impact of Industrial collaborative agglomeration (ICA) on green economy efficiency follows a U‐shaped curve relationship, when the degree of ICA is below the inflection point (1.4022), it negatively affects green economy efficiency. However, when the degree surpasses that point, it demonstrates a positive impact. (2) Domestic technological stock and international technology transfer act as mediating variables between ICA and green economy efficiency. Advancements in domestic technology innovation and increased international technology transfer contribute to a positive effect of ICA on green economic efficiency.

E-COMMERCE IN INTERNATIONAL BUSINESS

Divers may find plenty of opportunities in the international business world, but staying afloat can be challenging. In addition to the fact that this integration of IB with e-commerce will lead to an increase in complexity, it will also facilitate trade and remove many other obstacles that were previously present. A tremendous asset that one may learn and grow from is the quick growth of partnerships across countries worldwide as a consequence of IB, which has led to the best of each other's land and the flow of products and services. International business encompasses any profitable endeavours that promote the international transfer of goods, services, people, ideas, and technology. What are known as "internal business operations"? They occur within the borders of a nation. When companies buy and sell items, commodities, and services over international boundaries, it's called international commerce. This kind of firm is called an international business. The government or a commercial entity may own such trading techniques. Additionally, the country's economy remains steady. There are no competitors in a perilous nation. A global corporation's tools, goals, and objectives should inform its strategy development process.

Technology Transfer from China to Kenya for Transport Infrastructure: The Case of International Trunk Roads

Literature on technology transfer to Africa is dominated by studies on agribusiness, military technology, information and communication technology, energy, climate change, health, and manufacturing, while it is scanty on others like transport infrastructure. In this article, we reviewed literature and carried out key informant interviews to collect data on technology transfer for Chinese-built roads in Kenya. Our objective was to examine the extent of technology transfer from Chinese multinational corporations to Kenyan institutions and organizations. We established that there was little technology transfer mostly because of Kenya’s internal obstacles such as inadequate absorptive capacity, weak competition culture, and weak legal and institutional frameworks on technology transfer. Multinational corporations transferred technology primarily to fulfil their commercial objectives and to meet the domestic labour training requirements. The technology transferred was not sufficient to simulate innovation and technology development in Kenya. We recommend reviewing Kenya’s legal and institutional frameworks on international technology transfer in order to improve the participation in and enforcement of technology transfer by government institutions.

The Legend of Pure Spring Water: The Development of Industrial Water Treatment and its Diffusion through Technology Transfer as the Basis for the Industrialization and Internationalization of Brewing

Abstract By examining the horizontal and vertical, international knowledge and technology transfer of specific industrial water-treatment-technologies, this paper reflects on their interaction with beer production. Against the background of the discrepancy between the importance of narratives on naturalness and originality in relation to brewing water and the industrial mass production in its historicity, an insight into a largely invisible but nevertheless fundamentally important technology will be given.

The International Energy Agency's Role in Supporting the Sustainability of Renewable Energy Supply in Indonesia

Indonesia, as a country with abundant natural resources, faces serious challenges related to the use of non-renewable natural resources such as petroleum. Negative environmental impacts and the risk of depletion of these resources have triggered the need for a transition to renewable energy. We use an inductive qualitative method through document research as data collection. Given the International Energy Agency's (IEA) role in supporting national energy sustainability and reviewing Indonesia's energy policies, a pertinent question arises regarding its role in Indonesia. This study aims to analyze the concrete role of the International Energy Agency (IEA) in supporting the sustainability of renewable energy supply in Indonesia with reference to SDG 7. This study finds that the role of the IEA in striving for a renewable energy transition in Indonesia centres on providing analysis of the potential and challenges as well as policy recommendations to direct the government in developing strategies for implementing renewable energy. The IEA also facilitates international cooperation, technology transfer, and investment in the renewable energy sector. Indonesia is committed to achieving the targets of Sustainable Development Goal (SDG) 7, which focuses on universal access to affordable, clean, and sustainable energy. Cooperation with the IEA will continue to be key in achieving this goal, especially to achieve the net-zero emissions target by 2060 and ensure the availability of a sustainable renewable energy supply.

Impact of liberalization and globalization on economic growth: Empirical evidence from Türkiye

Globalization, as the process of integration of the world economy, increases international trade, capital movements, and technology transfer. This study examines the relationship between globalization and economic growth in the 1974-2022 period in Türkiye. In this study, the ARDL Bound method was used for cointegration analysis and the DCC-EGARCH model was used to capture time-varying relationships. The results of the ARDL-Bound model show a positive and long-term correlation between globalization and economic growth in Türkiye. According to the results of the DCC model, there has been a generally positive relationship between economic growth and the globalization index since 1984. Türkiye's economy has generally been positively influenced by economic liberalization processes and globalization. However, the export-oriented growth strategy seems to have lost its effect after 2005. Moreover, the globalization benefits of foreign direct investment were only evident between 2000 and 2009, after which the positive relationship decreased. In the interest of attracting FDI and promoting sustainable economic growth, Türkiye should review its investment-friendly policies and develop strategies aimed at long-term benefits.

Reviewing the advancements in offshore drilling technologies in the USA and their global impact

This study provides an overview of the significant advancements in offshore drilling technologies within the United States and their consequential global impact. As the world's leading innovator in the energy sector, the USA has played a pivotal role in shaping the future of offshore drilling, pushing the boundaries of technological capabilities and fostering sustainable practices. The review begins by highlighting the evolution of offshore drilling technologies in the USA over the past decade. Innovations such as advanced drilling rigs, smart sensors, and real-time data analytics have revolutionized the industry, enhancing operational efficiency, safety, and environmental sustainability. These technological breakthroughs have not only increased the depth and reach of offshore drilling but have also significantly reduced exploration risks and minimized the environmental footprint. The global impact of these advancements is explored, emphasizing the ripple effect on international energy markets, geopolitical dynamics, and environmental stewardship. The USA's expertise in developing cutting-edge technologies has been instrumental in influencing global industry standards and best practices. International collaborations, knowledge exchange, and technology transfer have facilitated the adoption of these advancements in offshore drilling practices across the globe. Furthermore, the study addresses the role of regulatory frameworks and industry collaborations in shaping the trajectory of offshore drilling technologies. The USA's commitment to stringent safety and environmental regulations has set a benchmark for responsible offshore exploration, influencing other nations to implement similar standards. The study concludes by highlighting the future prospects and challenges in offshore drilling technologies. As the energy landscape continues to evolve, the USA remains at the forefront of research and development, driving innovation towards cleaner, more efficient, and sustainable offshore drilling solutions. The ongoing collaboration between industry stakeholders, government bodies, and research institutions is crucial for addressing emerging challenges and ensuring the continued positive global impact of USA's advancements in offshore drilling technologies.

Innovative German technology in sub-Saharan Africa: Where is it used?

Germany is the largest economy in Europe, and currently the fourth largest in the world. It is also the most innovative country as measured by patent registrations. Technology transfers originating in Germany are therefore highly innovative and have a great potential to positively impact the economic situation in other countries as well. As the patents are generally held by businesses, it is commonly assumed that the logic of transferring technologies across borders also follows an economic motive. Here, this motive is questioned in a quantitative analysis, showing what determines the selection of destination country for German businesses looking to transfer their technology. It is shown that, contrary to common perception, the primary motivation is developmental, not economic. This is in line with international political declarations and calls for more (and more effective) international technology transfer. Furthermore, the best way to support international technology transfer is through the presence of German experts providing support in manifold ways to those businesses interested in international transfers.

НАПРАВЛЕНИЯ СОВЕРШЕНСТВОВАНИЯ ИННОВАЦИОННОГО РАЗВИТИЯ ОТЕЧЕСТВЕННОЙ ЭКОНОМИЧЕСКОЙ СИСТЕМЫ

The purpose of the article is to systematize the problems and develop recommendations for improving the innovative development of the economic system of the Russian Federation. The main objectives of the article are: clarification of the content of the concept of “innovative development of the economic system”; systematization of the problems of innovative development of the economic system of the Russian Federation; formation of recommendations for improving the innovative development of the economic system of the Russian Federation. Methodology. The methodological basis of the article is the dialectical method of studying trends and problems of innovative development and a systematic approach. In the process of writing the article, such research methods as analysis, synthesis, induction, deduction, analysis of normative legal acts and statistical information were used, correlation and regression. Results. We have systematized the main institutional, organizational, financial, analytical and methodological problems of ensuring the effectiveness of innovative development of the modern economy of the Russian Federation. Based on the functional analysis, insufficient efficiency of investments in innovations in the economy of the Russian Federation 2012-2023 was revealed. Recommendations have been developed on the formation of a comprehensive federal program to enhance the innovative development of the Russian Federation (for example, for the period up to 2030), which would include measures to tax incentives for innovatively active companies, administrative impact in terms of enhancing the involvement of domestic banks and insurance organizations in innovative processes, measures to intensify the processes of formation, development and improvement of national, regional and local innovative industrial and other industry clusters, to develop mutually beneficial international transfer of advanced technologies with friendly countries.

International Technology Transfer Regimes in Latin America

International Technology Transfer Regimes in Latin America

СОВРЕМЕННЫЕ ТЕНДЕНЦИИ РАЗВИТИЯ ТРАНCФЕРА ТЕХНОЛОГИЙ (НА ПРИМЕРЕ ЭНЕРГЕТИКИ)

The 20th century is the century of discoveries and new technologies. The following 21st century is characterized by the development of the economy due to the growth of investment in technology and the development of international technology transfer, i.e. technology exchange. The growth of knowledge is limited by the objective limitations of the existing means of research and experimentation, and is also limited by the financial budget. The COVID-19 pandemic has contributed to the improvement of business processes and the environment through innovation, the development of e-retail and high-tech products. The study determined that the United States is the leader in R&D spending, followed by other developed countries (Germany, South Korea, Japan), while China ranks first in terms of the number of patents and the level of innovation. Russia ranks 7th in the world in terms of the number of registered and protected inventions, and R&D spending is less than 1% of GDP in 2021. A study of nuclear industry projects led to the conclusion that it is not very susceptible to sanctions. Rosatom State Corporation cooperates with both Asian and European countries. At the same time, one can single out a trend towards a decrease in sales of technologies in embodied form due to sanctions rhetoric for other sectors of the extractive industry in Russia. An important constraint is the young legislation in the field of innovation. Against the backdrop of insufficient state support for the scientific sphere and sanctions pressure, market mechanisms do not ensure the strengthening of cooperation between Russia and other countries. For Russia, it is important to exchange developments between participants in the local market, with colleagues, at least in the industry. It is not advisable to expect the exchange of technologies with Chinese, Indian and other partners who are guided by TT with Western countries; active measures are needed to promote public-private partnerships, create conditions for “cultivation” and commercialization of domestic developments in technology parks and other clusters.

Assessing the Potential of AI–ML in Urban Climate Change Adaptation and Sustainable Development

This study addresses a notable gap in the climate change literature by examining the potential of artificial intelligence and machine learning (AI–ML) in urban climate change adaptation and sustainable development across major global continents. While much attention has been given to mitigation strategies, this study uniquely delves into the AI–ML’s underexplored role in catalyzing climate change adaptation in contemporary and future urban centers. The research thoroughly explores diverse case studies from Africa, Asia, Australasia, Europe, North America, and South America, utilizing a methodological framework involving six-step and five-step models for systematic literature reviews. The findings underscore AI–ML achievements, illuminate challenges, and emphasize the need for context-specific and collaborative approaches. The findings imply that a one-size-fits-all approach is insufficient. Instead, successful adaptation strategies must be intricately linked to the particular characteristics, vulnerabilities, and intricacies of each region. Furthermore, the research underscores the importance of international collaboration, knowledge sharing, and technology transfer to expedite the integration of AI–ML into climate adaptation strategies globally. The study envisions a promising trajectory for AI–ML in the climate adaptation domain, emphasizing the necessity for ongoing research, innovation, and practical AI–ML applications. As climate change remains a defining challenge, this research predicts an increasingly pivotal role for AI–ML in constructing climate-resilient urban centers and promoting sustainable development. Continuous efforts to advance AI–ML technologies, establish robust policy frameworks, and ensure universal access are crucial for harnessing AI–ML’s transformative capabilities to combat climate change consequences.

Sustainability performance of multinational companies in Malaysia

This study investigated the influence of market environment, cultural distance, government policy, and absorptive capacity on international intra-firm technology transfer and organizational sustainability performance among subsidiaries of foreign-based multinational corporations (MNCs) in Malaysia. Quantitative data was collected from randomly selected 252 MNC-Subsidiaries in Malaysia. Data analysis revealed that market environment, determined by market dynamism and competitors' intensity; cultural distance determined by national and organizational cultural distance; along with absorptive capacity, captured by the constructs of ability and motivation have a significant positive effect on intra-firm technology transfer. The study also revealed a significant positive influence of intra-firm technology transfer on organizational sustainability performance across the sample. Furthermore, the results showed a significant indirect effect of market environment, cultural distance, and absorptive capacity on sustainability performance through (mediation) intra-firm technology transfer. The results of this study could serve as a specific reference for policymakers of rapidly emerging economies in order to strengthen policies for a more dynamic, competitive, market and support their citizens to acquire relevant education, skills, and cultural awareness that would enhance technological inflows leading towards improved organizational sustainability.

Innovative and financial modernization of transportation system based on international technology transfer

The object of the study is the process of innovative and financial modernization of the transport system based on international technology transfer. The problem of innovative foundations of strengthening its competitiveness in the conditions of integration into the EU has been solved. The main results obtained: disclosure of the innovative essence of technology transfer, substantiation of the organizational and economic mechanism and systematization of demand factors of the transport system for technology transfer, its financial and investment support. The obtained results are illustrated by a system of qualitative and quantitative indicators. It was established that during 2010–2019, the share of spending on the GDR in the national GDP decreased from 0.75 % to 0.43 %, but at the EU level it increased from 1.92 % to 2.14 %. The high dependence of countries on the transfer of technologies and innovations due to the negative values of their export and import balances has been proven. Their main share in 2020–2021 in the country falls on licenses – 51.39 % and 44.48 %, respectively, as well as franchises and trademarks – 38.55 % and 39.51 %, respectively. The results are explained by the lack of financial resources for the implementation of innovations, the lack of scientific research, etc. The peculiarities of the conducted research are the use of a dynamic approach for the provision of a balance between innovations and sources of their financing, of strengthening the competitive positions of the transport system in the conditions of European integration. The scope of the results is the development of strategic innovative foundations for the transport system, and the conditions for their practical use are promising tools for financial and investment support.

Legal security of the system of infrastructure support of innovative activities under the conditions of European integration processes

Problem setting. The European integration vector of the development of Ukraine in modern conditions should be directed to the key needs of the state, one of which is the aspiration to join the EU, which should be based on established processes of approximation of current legislation to international legal standards and dynamism of entry into the European scientific, educational and digital spaces. Martial law outlined new priorities for state support, however, the implementation of innovative activities is of key importance for ensuring the competitiveness of the national economy, the innovative path of which is actualized precisely through the relevant strategic orientations and measures, which must be of a systemic nature. analysis of recent researches and publications. Legal issues of implementation of support for innovative activities and problems of infrastructural support of the innovation process have been studied by many scientists. In the scientific works of S. V. Hlibko topical issues regarding the improvement of the legal regulation of the innovation process were investigated. O. V. Rozghon conducted a study of conceptual provisions regarding the substantiation of the essence of the category “international technology transfer” and a bibliographic analysis of the study of this category. Yu. M. Zhornokui analyzed legislative and doctrinal approaches in European countries regarding the formation of organizational and legal forms of venture investment in innovative activities. the purpose of the research is to study the topical legal issues related to ensuring the systematic nature of infrastructure support for innovation in the context of European integration processes. article’s main body. In today’s conditions of intensification of integration and globalization processes, one of the main factors in increasing the competitiveness of Ukrainian enterprises is their capacity for innovative activity, the economic effect of which is positive only in the case of the systemic nature of the implementation of innovative changes based on e formed innovation strategy. Proper strategic planning and systematic measures to support activities in the innovation market have a decisive influence on the state of the national economy, including its innovative direction. Today, there are indeed legal problems regarding the lack of a systematic approach to ensuring the innovative development of the national economy and regions of Ukraine, which require an urgent solution in the conditions of the general trend regarding the passive-static state of the current legislation in the field of innovation, taking into account the need for the intensification of European integration processes. The legal support of the national innovation ecosystem should have effective means of supporting and stimulating the implementation of innovative activities and the corresponding infrastructural support of the innovation process, taking into account modern challenges, real needs and generally defined strategic guidelines of the state in this area. At the same time, the construction of an effective innovation policy should also take place according to the principle of adaptive formation, taking into account the real needs of regulatory regulation, the current state of innovation development, the need to ensure effective interaction between all subjects of the innovation infrastructure and components of the national innovation system. conclusions and prospects for the development. The study of current legal issues regarding the provision of systematic infrastructural support for innovative activities in the context of European integration processes allows us to conclude that a dynamic push is now urgently needed for the development of all components of the country’s general innovation ecosystem, a decisive role is played by the use of a systemic approach, which will provide the opportunity to optimize the use innovation potential of Ukraine and significantly increase the competitiveness of the national economy based on the construction of an effective national innovation ecosystem.

Legal security of the system of infrastructure support of innovative activities under the conditions of European integration processes

Problem setting. The European integration vector of the development of Ukraine in modern conditions should be directed to the key needs of the state, one of which is the aspiration to join the EU, which should be based on established processes of approximation of current legislation to international legal standards and dynamism of entry into the European scientific, educational and digital spaces. Martial law outlined new priorities for state support, however, the implementation of innovative activities is of key importance for ensuring the competitiveness of the national economy, the innovative path of which is actualized precisely through the relevant strategic orientations and measures, which must be of a systemic nature. analysis of recent researches and publications. Legal issues of implementation of support for innovative activities and problems of infrastructural support of the innovation process have been studied by many scientists. In the scientific works of S. V. Hlibko topical issues regarding the improvement of the legal regulation of the innovation process were investigated. O. V. Rozghon conducted a study of conceptual provisions regarding the substantiation of the essence of the category “international technology transfer” and a bibliographic analysis of the study of this category. Yu. M. Zhornokui analyzed legislative and doctrinal approaches in European countries regarding the formation of organizational and legal forms of venture investment in innovative activities. the purpose of the research is to study the topical legal issues related to ensuring the systematic nature of infrastructure support for innovation in the context of European integration processes. article’s main body. In today’s conditions of intensification of integration and globalization processes, one of the main factors in increasing the competitiveness of Ukrainian enterprises is their capacity for innovative activity, the economic effect of which is positive only in the case of the systemic nature of the implementation of innovative changes based on e formed innovation strategy. Proper strategic planning and systematic measures to support activities in the innovation market have a decisive influence on the state of the national economy, including its innovative direction. Today, there are indeed legal problems regarding the lack of a systematic approach to ensuring the innovative development of the national economy and regions of Ukraine, which require an urgent solution in the conditions of the general trend regarding the passive-static state of the current legislation in the field of innovation, taking into account the need for the intensification of European integration processes. The legal support of the national innovation ecosystem should have effective means of supporting and stimulating the implementation of innovative activities and the corresponding infrastructural support of the innovation process, taking into account modern challenges, real needs and generally defined strategic guidelines of the state in this area. At the same time, the construction of an effective innovation policy should also take place according to the principle of adaptive formation, taking into account the real needs of regulatory regulation, the current state of innovation development, the need to ensure effective interaction between all subjects of the innovation infrastructure and components of the national innovation system. conclusions and prospects for the development. The study of current legal issues regarding the provision of systematic infrastructural support for innovative activities in the context of European integration processes allows us to conclude that a dynamic push is now urgently needed for the development of all components of the country’s general innovation ecosystem, a decisive role is played by the use of a systemic approach, which will provide the opportunity to optimize the use innovation potential of Ukraine and significantly increase the competitiveness of the national economy based on the construction of an effective national innovation ecosystem.

FDI Flows and the Effects of the Shadow Economy: Evidence from Gravity Modelling

This paper analyzes the question of if the size of the shadow economy affects foreign direct investment (FDI) flows and what effects, if any, there are. Since about 1990, FDI has become the second crucial pillar of economic globalization in OECD countries and worldwide; such FDI inward and outward flows contribute to higher per capita income and international technology transfer. To analyze this question, both fixed effects, as well as dyadic fixed effects gravity models, are used on an OECD-only dataset that allows for data on bilateral, bidirectional FDI flows for the years from 1992-2018. The empirical results suggest a positive effect of the shadow economy for FDI target countries and a negative effect for FDI origin countries. Additional findings via an interaction term show that the shadow economy can counteract the negative effects of an increase in government size on FDI inflows. From a policy perspective, changes in the size of the shadow economy – typically taking place in periods of recession, in a high taxation environment, or in the context of a pandemic shock – should be carefully monitored by economic policymakers as well as by policy monitoring international organizations such as the IMF and the EBRD. If a group of (OECD) countries decides to adopt anti-shadow economy economic policies, there will be pressure on other (OECD) countries to also adopt similar policies since the difference between the size of the shadow economy in the source country and the host country has a negative impact on FDI inflows. Thus, FDI could indirectly be a catalyst for reforms. Keywords: international economics, foreign direct investment, gravity model, shadow economy, OECD countries JEL classification: C23, E26, F21, F23