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

Research output: Preprint or Working paper › Working paper

40 Downloads (Pure)

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
Publisher	Aston University
ISBN (Print)	978-1-85449-689-8
Publication status	Published - 2007

Publication series

Name	Aston Business School research papers
Publisher	Aston University
No.	RP0707

Bibliographical note

Aston Business School Research Papers are published by the Institute to bring the results of research in progress to a wider audience and to facilitate discussion. They will normally be published in a revised form subsequently and the agreement of the authors should be obtained before referring to its contents in other published works.

Access to Document

Technology flows, outsourcing and productivity
Aston Business School Research Papers are published by the Institute to bring the results of research in progress to a wider audience and to facilitate discussion. They will normally be published in a revised form subsequently and the agreement of the authors should be obtained before referring to its contents in other published works.
Accepted author manuscript, 130 KBLicence: CC BY 3.0

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Research output: Unpublished contribution to conference › Unpublished Conference Paper › peer-review
Technology flows, outsourcing and productivity: an analysis of UK trade and FDI
Driffield, N. L., Henry, M. & Love, J. H., 2006.
Research output: Unpublished contribution to conference › Unpublished Conference Paper › peer-review

Cite this

@techreport{4716f4c658834cd9addbf63c87172734,

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.\}",

note = "Aston Business School Research Papers are published by the Institute to bring the results of research in progress to a wider audience and to facilitate discussion. They will normally be published in a revised form subsequently and the agreement of the authors should be obtained before referring to its contents in other published works.",

year = "2007",

language = "English",

isbn = "978-1-85449-689-8 ",

series = "Aston Business School research papers",

publisher = "Aston University",

number = "RP0707",

type = "WorkingPaper",

institution = "Aston University",

}

TY - UNPB

T1 - Technology flows, outsourcing and productivity

T2 - an analysis of UK trade and FDI

AU - Driffield, Nigel L.

AU - Henry, Michael

AU - Love, James H.

N1 - Aston Business School Research Papers are published by the Institute to bring the results of research in progress to a wider audience and to facilitate discussion. They will normally be published in a revised form subsequently and the agreement of the authors should be obtained before referring to its contents in other published works.

PY - 2007

Y1 - 2007

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 - Working paper

SN - 978-1-85449-689-8

T3 - Aston Business School research papers

BT - Technology flows, outsourcing and productivity

PB - Aston University

ER -

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

Abstract

Publication series

Bibliographical note

Access to Document

Fingerprint

Research output

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

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

Cite this