Globalisation and Innovation Activity in Developing Countries


Tee, Chee Lip and Ibrahim, Saifuzzaman and Saini, Azman (2018) Globalisation and Innovation Activity in Developing Countries. Institutions and Economies, 10 (4). pp. 1-18. ISSN 2232-1349

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This paper is an empirical assessment of the impacts of globalisation on innovative activity across developing countries. The focus is on the role of trade and capital account openness. Extreme-Bound-Analysis (EBA) approach is applied to analyse data from 58 countries over the 1996-2011 period. Though globalisation leads to greater interaction between countries through trade and Foreign Direct Investment (FDI), not all of these interactions affect domestic innovation activities. The result reveal only imports of machinery and equipment promote domestic innovation activity while there is insufficient empirical evidence to suggest that this relationship exists for imports of manufactured goods and FDI inflows. This finding is consistent with the view that import is a more important channel for technology transfer than FDI.

Item Type: Article
Uncontrolled Keywords: Investments, Foreign
Subjects: H Social Sciences > HG Finance > HG4501-6051 Investment, capital formation, speculation > HG4538 Foreign investments
Divisions: Faculty of Management (FOM)
Depositing User: Ms Suzilawati Abu Samah
Date Deposited: 22 Nov 2020 16:58
Last Modified: 22 Nov 2020 16:58


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