International technology transfer to less developed countries, firm characteristics and domestic investment climate: A MIMIC model
[Thesis]
;supervisor: Dumas, Lloyd J., Beron, Kurt
The University of Texas at Dallas: United States -- Texas
: 2010
122 pages
Ph.D.
, The University of Texas at Dallas: United States -- Texas
Existing literature on growth and development studies presents three stylized hypotheses about development in LDCs: (i) the importance of physical capital, human capital, and technological progress as main inputs for economic development; (ii) the global integration of economies is facilitating diffusion of technology across national boarders - a necessary determinant of sustainable economic development in the LDCs, which are slow to develop new technologies and therefore depend on adoption of exising technology available in advanced industrial countries; and (iii) the importance of the activities of transnational companies (TNCs) as media of technology transfer across national borders in different forms and through different channels. This dissertation examines what factors influence a firm's propensity for inward technology transfer into its host LDC with the aim of gaining a better understanding of the dynamics of international technogy transfer and providing empirical evidence that can inform technology transfer policies of LDCs, especially as related to activities of foreign-owned firms. To deal with the methodological challenge of measuring technology transfer, the study uses a MIMIC type structural equation model. In so doing, the study proceeds to identify the forms of technology transferred through firm activities; develop a latent construct of technology transfer propensity of firms, identify four groups of firms operating in LDCs, and investigate what firm-specific characterisitcs and domestic economic factors influence the firm's propensities for inward technology transfer. The results show that firm type matters, that is, the determinants of technology transfer propensity differ across the different groups of firms in LDCs. Generally, the results show some similarities across firm groups with respect to the effects of firm-specific characteristics on their technology transfer propensities. Controlling for domestic investment climate experiences of firms separates the firm types. The results show that domestic-owned localized firms are more responsive to changes in domestic economic factors than foreign-owned localized firms or TNCs. However, poor physical infrastructure negatively affects firm's propensity for inward technology transfer, regardless of the type of firm.