Empirical evidence suggests that the emergence of international production networks in East Asia results from market-driven forces such as vertical specialization and higher production costs in the home countries and institutional-led reasons such as free trade agreements. The growth in trade in...

"A linearized version of Pinkse and Slade's (1998) spatial probit estimator is used to account for the tendency of auto supplier plants to cluster together. By reducing estimation to two steps--standard probit or logit followed by two-stage least squares--linearization produces a model that can...

This paper suggests the importance and benefits that foreign direct investment (FDI) exerts in a host economy development, through the international transfer of technologies to an intermediate technological and economic developed country, with a significant technological gap. The importance of...

Foreign direct investment is supposed to stimulate economic growth through the transfer of new technical knowledge and product innovation. This paper deals with the knowledge flow within the Japanese automotive supply chain catalysed by the keiretsu network in Indonesia. For this purpose, we...

A linearized version of Pinkse and Slade's (1998) spatial probit estimator is used to account for the tendency of auto supplier plants to cluster together. By reducing estimation to two steps - standard probit or logit followed by two-stage least squares - linearization produces a model that can...