Template-type: ReDIF-Paper 1.0
Author-Name: Kathuria, Vinish
Author-Email: vinish@igidr.ac.in
Author-Workplace-Name: Indira Gandhi Institute of Development Research
Title: Foreign Firms and Technology Transfer Knowledge Spillovers to Indian                              Manufacturing Firms
Abstract: The present paper uses techniques from stochastic production frontier and panel
	 data literature to test for the spillover hypothesis that 'presence of foreign
	 firms and disembodied technology import in a sector leads to higher productivity
	 growth for domestic firms'. The study uses panel data for 368 medium and
	 large-sized Indian manufacturing firms for the period 1975-76 to 1988-89. The
	 results indicate that the domestic firms tend to benefit from foreign-owned firms
	 irrespective of the technological and production requirement of the sectors.
	 However, once the initial level of productivity gap is considered, it is firms
	 belonging to the 'scientific' subgroup that experience knowledge spillovers from
	 the presence of foreign-owned firms. The other source of knowledge spillover i.e.,
	 disembodied technology import in the sector does not attain significance in either
	 variant of the model. Furthermore, the result of previous studies that find
	 knowledge spillovers in low-tech sectors where technology-gap is smaller between
	 foreign-owned firms and local firms is also not validated in the present study.
Keywords: Foreign Enterprises, Technology Transfer, Industry, India
Series: Discussion Paper
Creation-Date: 1998
Number: 1998-04
File-URL: https://www.merit.unu.edu/publications/discussion-papers/9804.pdf
File-Format: application/pdf
File-Size: 110 Kb
Handle: RePEc:unm:unuint:199804