Multinational corporations, foreign investment, and royalties and license fees: effects on host-country total factor productivity
In this paper we examine the relationship between inward FDI and total factor productivity (TFP) in a framework motivated by the OLI paradigm. A panel data approach is used to study the effects of FDI and payments of royalties and license fees (R&L) on aggregate TFP in a sample of 16 OECD countr...
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| Format: | Article |
| Language: | English |
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Coimbra University Press
2008-12-01
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| Series: | Notas Económicas |
| Online Access: | https://impactum-journals.uc.pt/notaseconomicas/article/view/3478 |
| _version_ | 1818399942543147008 |
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| author | Argentino Pessoa |
| author_facet | Argentino Pessoa |
| author_sort | Argentino Pessoa |
| collection | DOAJ |
| description | In this paper we examine the relationship between inward FDI and total factor productivity (TFP) in a framework motivated by the OLI paradigm. A panel data approach is used to study the effects of FDI and payments of royalties and license fees (R&L) on aggregate TFP in a sample of 16 OECD countries, between 1985 and 2002. Our empirical tests show that FDI and R&L have a positive impact on host-country TFP, and also suggest that the amount of positive effects of FDI and R&L is dependent on the level of development of the receiving country. Additionally, our data show that, when other factors remain constant, inward FDI and R&L payments are substitutes in positively influencing TFP of the host country. |
| first_indexed | 2024-12-14T07:28:42Z |
| format | Article |
| id | doaj.art-a0ff9a2d846342619d4f43193d1b48e6 |
| institution | Directory Open Access Journal |
| issn | 0872-4733 2183-203X |
| language | English |
| last_indexed | 2024-12-14T07:28:42Z |
| publishDate | 2008-12-01 |
| publisher | Coimbra University Press |
| record_format | Article |
| series | Notas Económicas |
| spelling | doaj.art-a0ff9a2d846342619d4f43193d1b48e62022-12-21T23:11:26ZengCoimbra University PressNotas Económicas0872-47332183-203X2008-12-012810.14195/2183-203X_28_1Multinational corporations, foreign investment, and royalties and license fees: effects on host-country total factor productivityArgentino Pessoa0Universidade de CoimbraIn this paper we examine the relationship between inward FDI and total factor productivity (TFP) in a framework motivated by the OLI paradigm. A panel data approach is used to study the effects of FDI and payments of royalties and license fees (R&L) on aggregate TFP in a sample of 16 OECD countries, between 1985 and 2002. Our empirical tests show that FDI and R&L have a positive impact on host-country TFP, and also suggest that the amount of positive effects of FDI and R&L is dependent on the level of development of the receiving country. Additionally, our data show that, when other factors remain constant, inward FDI and R&L payments are substitutes in positively influencing TFP of the host country.https://impactum-journals.uc.pt/notaseconomicas/article/view/3478 |
| spellingShingle | Argentino Pessoa Multinational corporations, foreign investment, and royalties and license fees: effects on host-country total factor productivity Notas Económicas |
| title | Multinational corporations, foreign investment, and royalties and license fees: effects on host-country total factor productivity |
| title_full | Multinational corporations, foreign investment, and royalties and license fees: effects on host-country total factor productivity |
| title_fullStr | Multinational corporations, foreign investment, and royalties and license fees: effects on host-country total factor productivity |
| title_full_unstemmed | Multinational corporations, foreign investment, and royalties and license fees: effects on host-country total factor productivity |
| title_short | Multinational corporations, foreign investment, and royalties and license fees: effects on host-country total factor productivity |
| title_sort | multinational corporations foreign investment and royalties and license fees effects on host country total factor productivity |
| url | https://impactum-journals.uc.pt/notaseconomicas/article/view/3478 |
| work_keys_str_mv | AT argentinopessoa multinationalcorporationsforeigninvestmentandroyaltiesandlicensefeeseffectsonhostcountrytotalfactorproductivity |