This paper develops a two-tier oligopoly model in which the entry of a multinational firm results in technology transfer to its local suppliers and also impacts the degree of backward linkages in the local industry. The model endogenizes the multinational's choice between anonymous market...

When technology transfer is costly, a foreign firm and host country government may differ in their preferences over direct entry and acquisition. Government intervention could help induce the socially preferred choice.Foreign direct investment can take place through the direct entry of foreign...

Javorcik, Saggi, and Spatareanu use a firm-level panel data set from Romania to examine whether the nationality of foreign investors affects the degree of vertical spillovers from foreign direct investment. Investors' country of origin may matter for spillovers to domestic producers in upstream...

Vertical international technology transfer may differ substantially from the horizontal technology transfer emphasized in the literature. In this model, a downstream firm benefits from the diffusion of knowledge it transfers to a developing country firm because diffusion increases demand for its...

A developing country may attract foreign direct investment (FDI) for (1) technology transfer that increases local firm profits or for (2) wage premiums that benefit workers. The two never occur together but if the country can attract FDI, it is guaranteed either the technology transfer or the...

Hoekman, Maskus, and Saggi analyze national and international policy options to encourage the international transfer of technology, distinguishing between four major channels of such transfer: trade in products, trade in knowledge, foreign direct investment, and intra-national and international...