Risk, Learning, and the Technology Content of FDI: A Dynamic Model

• Main Authors: CHANG, Pao Li, LU, Chia-Hui
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2010
• Subjects: Foreign Direct Investment; Technology; Risk; Learning by Doing; Dynamic; International Economics
• Online Access: https://ink.library.smu.edu.sg/soe_research/1163; https://ink.library.smu.edu.sg/context/soe_research/article/2162/viewcontent/FDI_Technology.pdf
• Institution: Singapore Management University

This paper builds a dynamic model of catching up to examine the policy stance of developing countries in attracting inward FDI. We show that the observably evident risk of FDI failure sets a minimum threshold on the South's technology capacity and furthermore creates a limit on the technology c...