Technology flows, outsourcing and productivity: an analysis of UK trade and FDI

Nigel L. Driffield; Michael Henry; James H. Love

Technology flows, outsourcing and productivity: an analysis of UK trade and FDI

Nigel L. Driffield, Michael Henry, James H. Love

Economics, Finance and Entrepreneurship

Research output: Unpublished contribution to conference › Unpublished Conference Paper › peer-review

Abstract

The literature on technology spillovers from trade and FDI is ambiguous in its findings. This may in part be because of the assumption in much of the work that trade and FDI flows are homogeneous in their determinants and thus in their effects. We develop a taxonomy of trade and FDI determinants based on R&D intensity and unit labour cost differentials, and test for the presence of spillovers from inward investment and imports on an extensive sample of UK manufacturing plants. We find that both trade and FDI have measurable spillover effects, but the sign and extent of these effects varies depending on the technological and factor cost differentials between the recipient and host economies. There is therefore an identifiable link between the determinants and effects of trade and FDI which the previous literature has not explored.

Original language	English
Publication status	Published - 2006
Event	9th international EUNIP conference - Limerick, Ireland Duration: 20 Jun 2006 → 22 Jun 2006

Conference

Conference	9th international EUNIP conference
Country/Territory	Ireland
City	Limerick
Period	20/06/06 → 22/06/06
Other	Theoretical and applied papers are invited in all areas of industrial policy, including the following: - Drivers of industrial development: large versus small firms - Spatial dimensions of industrial development - Governance and the determinants of local economic development - Policies to encourage industrial development (including: deregulation; EU harmonisation and regulation; impact of the 5th Enlargement) - Technology and innovation policy - The Evaluation Challenge: Lessons from regional and industrial development policies - Comparative analysis of industrial development: EU countries versus other regions in the world - Globalisation, transnational corporations and FDI - Knowledge intensive services and the learning economy [

1 Unpublished Conference Paper
1 Working paper

Technology flows, outsourcing and productivity: an analysis of UK trade and FDI
Driffield, N. L., Henry, M. & Love, J. H., 2007, Aston University, (Aston Business School research papers; no. RP0707).
Research output: Preprint or Working paper › Working paper

Open Access
File
FDI and technology diffusion in developing countries: the role of human capital and institutions
Driffield, N. & Henry, M., 2006.
Research output: Unpublished contribution to conference › Unpublished Conference Paper › peer-review

Cite this

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title = "Technology flows, outsourcing and productivity: an analysis of UK trade and FDI",

abstract = "The literature on technology spillovers from trade and FDI is ambiguous in its findings. This may in part be because of the assumption in much of the work that trade and FDI flows are homogeneous in their determinants and thus in their effects. We develop a taxonomy of trade and FDI determinants based on R&D intensity and unit labour cost differentials, and test for the presence of spillovers from inward investment and imports on an extensive sample of UK manufacturing plants. We find that both trade and FDI have measurable spillover effects, but the sign and extent of these effects varies depending on the technological and factor cost differentials between the recipient and host economies. There is therefore an identifiable link between the determinants and effects of trade and FDI which the previous literature has not explored.",

author = "Driffield, {Nigel L.} and Michael Henry and Love, {James H.}",

year = "2006",

language = "English",

note = "9th international EUNIP conference ; Conference date: 20-06-2006 Through 22-06-2006",

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T1 - Technology flows, outsourcing and productivity

T2 - 9th international EUNIP conference

AU - Driffield, Nigel L.

AU - Henry, Michael

AU - Love, James H.

PY - 2006

Y1 - 2006

N2 - The literature on technology spillovers from trade and FDI is ambiguous in its findings. This may in part be because of the assumption in much of the work that trade and FDI flows are homogeneous in their determinants and thus in their effects. We develop a taxonomy of trade and FDI determinants based on R&D intensity and unit labour cost differentials, and test for the presence of spillovers from inward investment and imports on an extensive sample of UK manufacturing plants. We find that both trade and FDI have measurable spillover effects, but the sign and extent of these effects varies depending on the technological and factor cost differentials between the recipient and host economies. There is therefore an identifiable link between the determinants and effects of trade and FDI which the previous literature has not explored.

AB - The literature on technology spillovers from trade and FDI is ambiguous in its findings. This may in part be because of the assumption in much of the work that trade and FDI flows are homogeneous in their determinants and thus in their effects. We develop a taxonomy of trade and FDI determinants based on R&D intensity and unit labour cost differentials, and test for the presence of spillovers from inward investment and imports on an extensive sample of UK manufacturing plants. We find that both trade and FDI have measurable spillover effects, but the sign and extent of these effects varies depending on the technological and factor cost differentials between the recipient and host economies. There is therefore an identifiable link between the determinants and effects of trade and FDI which the previous literature has not explored.

M3 - Unpublished Conference Paper

Y2 - 20 June 2006 through 22 June 2006

ER -

Technology flows, outsourcing and productivity: an analysis of UK trade and FDI

Abstract

Conference

Fingerprint

Research output

Technology flows, outsourcing and productivity: an analysis of UK trade and FDI

FDI and technology diffusion in developing countries: the role of human capital and institutions

Cite this