Catching-up to foreign technology?
Subtitle: evidence on the "Veblen-Gerschenkron" effect of foreign investments
By: Giovanni Peri, Dieter Urban.
Contributors: Urban, Dieter M.; National Bureau of Economic Research.
Series: NBER working paper series ;; working paper 10893; Working paper series (National Bureau of Economic Research : Online) ;; working paper no. 10893.
Publisher: National Bureau of Economic Research
Published: 2004
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Subjects: Investments, Foreign -- Economic aspects -- Germany.; Investments, Foreign -- Economic aspects -- Italy.; Technological innovations -- Germany.; Technological innovations -- Italy.; Manufacturing industries -- Technological innovations -- Germany.; Manufacturing industries -- Technological innovations -- Italy.
Description: "The presence of foreign multinational enterprises may benefit local economies.  In particular, highly productive foreign-owned firms may promote technological catch-up of local firms.  Such channel of spillovers is defined as "Veblen-Geschenkron" effect of Foreign Direct Investments and is analyzed in this article.  Rather than the overall density of foreign-owned plants in a region or sector, it is their productivity advantage that determines the positive effect on domestic firms in geographical and technological proximity.  We test this hypothesis using new firm-level data for German and Italian manufacturing firms during the 90's.  We find evidence of a significant Veblen-Gerschenkron effect which is robust to different ways of measuring total factor productivity (TFP) of firms and to different empirical specifications"--National Bureau of Economic Research web site.
Notes: Includes bibliographical references.
Title from PDF file as viewed on 1/13/2005.
Also available in print.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.