Is Foreign Direct Investment a Channel of Knowledge Spillovers?
Author InfoLee Branstetter Abstract Recent empirical work has examined the extent to which international trade fosters international spillovers’ of technological information. FDI is an alternate, potentially equally important channel for the mediation of such knowledge spillovers. I introduce a framework for measuring international knowledge spillovers at the firm level, and I use this framework to directly test the hypothesis that FDI is a channel of knowledge spillovers for Japanese multinationals undertaking direct investments in the United States. Using an original firm-level data set on Japanese firms’ FDI and innovative activity find evidence that FDI increases the flow of knowledge spillovers both from and to the investing Japanese firms. Download InfoTo download: If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDE
