FDI inflows and R&D activity in developing countries
This study investigates the impact of FDI inflows on R&D activity in 48 developing countries for the 1996-2013 periods. The results based on the system Generalized Method of Moment (GMM) estimator show that FDI inflows discourage R&D activity in developing countries. This finding is consiste...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Faculty of Economics and Management, Universiti Putra Malaysia
2018
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| Online Access: | http://psasir.upm.edu.my/id/eprint/16096/ http://psasir.upm.edu.my/id/eprint/16096/1/16%29%20FDI%20Inflows.pdf |
| _version_ | 1848842864684957696 |
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| author | Wan Ngah, Wan Azman Saini Mahamad Zakaria, Muhammad Farhan Tee, Chee Lip Tun, Yin Li |
| author_facet | Wan Ngah, Wan Azman Saini Mahamad Zakaria, Muhammad Farhan Tee, Chee Lip Tun, Yin Li |
| author_sort | Wan Ngah, Wan Azman Saini |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | This study investigates the impact of FDI inflows on R&D activity in 48 developing countries for the 1996-2013 periods. The results based on the system Generalized Method of Moment (GMM) estimator show that FDI inflows discourage R&D activity in developing countries. This finding is consistent with the view that foreign R&D investment is a substitute for domestic R&D efforts. This suggests that firms in developing countries are more inclined toward imitation of the existing products rather than innovation of a new technology. However, domestic R&D activity appears to benefit from imports of machinery and equipment, stronger legal protections, better human capital and higher economic growth. |
| first_indexed | 2025-11-15T08:05:55Z |
| format | Article |
| id | upm-16096 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T08:05:55Z |
| publishDate | 2018 |
| publisher | Faculty of Economics and Management, Universiti Putra Malaysia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-160962019-11-12T07:04:55Z http://psasir.upm.edu.my/id/eprint/16096/ FDI inflows and R&D activity in developing countries Wan Ngah, Wan Azman Saini Mahamad Zakaria, Muhammad Farhan Tee, Chee Lip Tun, Yin Li This study investigates the impact of FDI inflows on R&D activity in 48 developing countries for the 1996-2013 periods. The results based on the system Generalized Method of Moment (GMM) estimator show that FDI inflows discourage R&D activity in developing countries. This finding is consistent with the view that foreign R&D investment is a substitute for domestic R&D efforts. This suggests that firms in developing countries are more inclined toward imitation of the existing products rather than innovation of a new technology. However, domestic R&D activity appears to benefit from imports of machinery and equipment, stronger legal protections, better human capital and higher economic growth. Faculty of Economics and Management, Universiti Putra Malaysia 2018-11 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/16096/1/16%29%20FDI%20Inflows.pdf Wan Ngah, Wan Azman Saini and Mahamad Zakaria, Muhammad Farhan and Tee, Chee Lip and Tun, Yin Li (2018) FDI inflows and R&D activity in developing countries. International Journal of Economics and Management, 12 (spec. 2). pp. 509-521. ISSN 1823-836X; ESSN: 2600-9390 http://www.ijem.upm.edu.my/vol12_noS2/16)%20FDI%20Inflows.pdf |
| spellingShingle | Wan Ngah, Wan Azman Saini Mahamad Zakaria, Muhammad Farhan Tee, Chee Lip Tun, Yin Li FDI inflows and R&D activity in developing countries |
| title | FDI inflows and R&D activity in developing countries |
| title_full | FDI inflows and R&D activity in developing countries |
| title_fullStr | FDI inflows and R&D activity in developing countries |
| title_full_unstemmed | FDI inflows and R&D activity in developing countries |
| title_short | FDI inflows and R&D activity in developing countries |
| title_sort | fdi inflows and r&d activity in developing countries |
| url | http://psasir.upm.edu.my/id/eprint/16096/ http://psasir.upm.edu.my/id/eprint/16096/ http://psasir.upm.edu.my/id/eprint/16096/1/16%29%20FDI%20Inflows.pdf |