Innovative and Absorptive Capacity of International Knowledge : An Empirical Analysis of Productivity Sources in Latin American Countries

This article examines two sources of global knowledge spillovers: foreign direct investments (FDI) and trade. Empirical evidence demonstrates that FDI and trade can contribute to overall domestic productivity growth only when the technology gap between domestic and foreign firms is not too large and...

Full description

Bibliographic Details
Main Authors:	Laborda Castillo, Leopoldo, Sotelsek Salem, Daniel, Guasch, Jose Luis
Format:	Journal Article
Language:	en_US
Published:	Taylor and Francis 2013
Subjects:	Malmquist index technical efficiency Stochastic Frontier Analysis SFA
Online Access:	http://hdl.handle.net/10986/13338

id	okr-10986-13338
recordtype	oai_dc
spelling	okr-10986-133382021-04-23T14:03:07Z Innovative and Absorptive Capacity of International Knowledge : An Empirical Analysis of Productivity Sources in Latin American Countries Laborda Castillo, Leopoldo Sotelsek Salem, Daniel Guasch, Jose Luis Malmquist index technical efficiency Stochastic Frontier Analysis SFA This article examines two sources of global knowledge spillovers: foreign direct investments (FDI) and trade. Empirical evidence demonstrates that FDI and trade can contribute to overall domestic productivity growth only when the technology gap between domestic and foreign firms is not too large and when a sufficient absorptive capacity is available in domestic firms. In this article we propose the terms R&D and Labor quality to capture the innovative and absorptive capacity of the country. The spillovers effects in productivity are analyzed using a stochastic frontier (SFA) approach. This productivity (in terms of total factor productivity) is decomposed using a generalized Malmquist output-oriented index in order to evaluate the specific effect in technical change (TC), technical efficiency change (TEC), and scale efficiency change (SEC). Using country-level data for 16 Latin American countries for the period 1996–2006, the empirical analysis shows positive productivity spillovers from FDI and trade only when the country has absorptive capacity in terms of R&D. FDI and trade spillovers are found to be positive and significant for scale efficiency change and total productivity factor change. 2013-05-09T14:34:03Z 2013-05-09T14:34:03Z 2011-12-08 Journal Article Latin American Business Review 1097-8526 http://hdl.handle.net/10986/13338 en_US Latin American Business Review;12(4) http://creativecommons.org/licenses/by-nc-nd/3.0/igo CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo/ World Bank Taylor and Francis Journal Article Latin America
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	en_US
topic	Malmquist index technical efficiency Stochastic Frontier Analysis SFA
spellingShingle	Malmquist index technical efficiency Stochastic Frontier Analysis SFA Laborda Castillo, Leopoldo Sotelsek Salem, Daniel Guasch, Jose Luis Innovative and Absorptive Capacity of International Knowledge : An Empirical Analysis of Productivity Sources in Latin American Countries
geographic_facet	Latin America
relation	Latin American Business Review;12(4)
description	This article examines two sources of global knowledge spillovers: foreign direct investments (FDI) and trade. Empirical evidence demonstrates that FDI and trade can contribute to overall domestic productivity growth only when the technology gap between domestic and foreign firms is not too large and when a sufficient absorptive capacity is available in domestic firms. In this article we propose the terms R&D and Labor quality to capture the innovative and absorptive capacity of the country. The spillovers effects in productivity are analyzed using a stochastic frontier (SFA) approach. This productivity (in terms of total factor productivity) is decomposed using a generalized Malmquist output-oriented index in order to evaluate the specific effect in technical change (TC), technical efficiency change (TEC), and scale efficiency change (SEC). Using country-level data for 16 Latin American countries for the period 1996–2006, the empirical analysis shows positive productivity spillovers from FDI and trade only when the country has absorptive capacity in terms of R&D. FDI and trade spillovers are found to be positive and significant for scale efficiency change and total productivity factor change.
format	Journal Article
author	Laborda Castillo, Leopoldo Sotelsek Salem, Daniel Guasch, Jose Luis
author_facet	Laborda Castillo, Leopoldo Sotelsek Salem, Daniel Guasch, Jose Luis
author_sort	Laborda Castillo, Leopoldo
title	Innovative and Absorptive Capacity of International Knowledge : An Empirical Analysis of Productivity Sources in Latin American Countries
title_short	Innovative and Absorptive Capacity of International Knowledge : An Empirical Analysis of Productivity Sources in Latin American Countries
title_full	Innovative and Absorptive Capacity of International Knowledge : An Empirical Analysis of Productivity Sources in Latin American Countries
title_fullStr	Innovative and Absorptive Capacity of International Knowledge : An Empirical Analysis of Productivity Sources in Latin American Countries
title_full_unstemmed	Innovative and Absorptive Capacity of International Knowledge : An Empirical Analysis of Productivity Sources in Latin American Countries
title_sort	innovative and absorptive capacity of international knowledge : an empirical analysis of productivity sources in latin american countries
publisher	Taylor and Francis
publishDate	2013
url	http://hdl.handle.net/10986/13338
_version_	1764423227475492864

Innovative and Absorptive Capacity of International Knowledge : An Empirical Analysis of Productivity Sources in Latin American Countries

Similar Items