ABSTRACT
As mentioned earlier, one of the major expected benefits of FDI is the transfer of technology. Although trade and licensing agreements are other channels through which technology transfer can take place, FDI is generally acknowledged as one of the most important mechanisms. Empirical studies have found positive and significant knowledge spillovers stemming from inward FDI (Javorcik 2004, Bitzer and Kerekes 2008). One reason is that FDI is usually brought by MNCs which exhibit a high ratio of RampentityD (Saggi 2000: 17).
