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

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...

Trade does matter for the international transmission of knowledge. And the indirect trade-related transmission of knowledge is at least as important as its direct transmission.An influential literature argues that trade promotes the flow of knowledge and the transmission of technology between...