In this study, we use a cross-sectionally correlated and timewise autoregressive model and panel data for the period 1966-2000 to investigate human development as a measure of host country absorptive capacity in 30 developed and developing countries. The results suggest that technology diffusion...

Multinational enterprise (MNE) subsidiaries are thought to suffer from legitimacy shortfalls when they operate in foreign host countries. These may be to structural factors in the home country of the MNE, within the MNE and in the host country, and institutional distance between host and home...