Foreign entry and spillovers with technological incompatibilities in the supply chain

• 成果类型: Article
• 署名作者: Carluccio, Juan; Fally, Thibault
• 署名单位: European Central Bank; Bank of France; Paris School of Economics; University of Colorado System; University of Colorado Boulder
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2012.08.004
• 发表日期: 2013
• 页码: 123-135
• 关键词: foreign direct investment; spillovers; Technological incompatibilities; technology adoption; firm heterogeneity

摘要

Does foreign entry improve host country productivity and welfare? Previous studies have looked at the role of backward linkages with domestic suppliers and their effects on domestic competitors. In this paper, we study how these externalities are affected by technological incompatibilities between foreign and domestic technologies. When foreign technologies require specialized inputs, some local suppliers self-select into production for multinational firms. A decrease in the cost of inputs compatible with the foreign technology has heterogeneous effects. It benefits foreign firms and the most productive downstream domestic firms that adopt the foreign technology, and negatively affects firms using the domestic technology. Technological incompatibilities reduce the welfare gains from openness to FDI, but this negative effect can be overcome by domestic technology adoption. The model's predictions are consistent with the stylized facts drawn from the empirical literature on FDI spillovers. (C) 2012 Elsevier B.V. All rights reserved.