Cross-national knowledge transfer, absorptive capacity, and total factor productivity: the intermediary effect test of international technology spillover

The term ‘nation learning’ describes consistent and strategic cross-sector efforts to identify pathways towards economic catch-up. This chapter examines the global dynamics of national-level catch-up between 1995 and 2015 to gain insights into the relevance of nation-learning efforts. Over this period, most developing Asian countries made significant progress on catch-up. Focusing on their experience, the study finds capital accumulation and growth in total factor productivity to be crucial determinants of catch-up performance. However, some countries have lagged in promoting capital accumulation (Pakistan, Malaysia, and the Philippines) and total factor productivity (Vietnam, Indonesia, and Bangladesh). Focusing on these determinants, the chapter generates insights into relevant aspects of nation-learning efforts. Enablers of nation learning include pressures, leadership vision, and absorptive capacity; obstacles include the costs of learning and ‘status-quo bias’.

Download Full-text

Technical Efficiency and Total Factor Productivity Growth of Indonesian Manufacturing Industry: Does Openness Matter?

Studies in Microeconomics ◽

10.1177/23210222211024438 ◽

2021 ◽

pp. 232102222110244

Author(s):

Mohammad Zeqi Yasin

Keyword(s):

Technical Efficiency ◽

Total Factor Productivity ◽

Absorptive Capacity ◽

Manufacturing Industry ◽

Raw Material ◽

Foreign Firms ◽

Factor Productivity ◽

Stochastic Production Frontier ◽

Firm Level ◽

Tfp Growth

In this paper, we examine the contribution of openness variables such as import, export, absorptive capacity and foreign-shared capital to Indonesian firms’ technical efficiency and total factor productivity (TFP) growth. We use the most recent firm-level panel data of 23 subsectors in the manufacturing industry over the period from 2008 to 2015. We employ time-varying stochastic production frontier to examine factors affecting technical efficiency and to decompose the components of TFP growth. The results reveal that export and absorptive capacity alone contribute to the efficiency improvement of the firms under study. To speak specifically of foreign firms, they contribute to improving efficiency if they interact with absorptive capacity and imported raw material intensity. We identify that, on an average, the manufacturing industry in Indonesia experienced positive TFP growth. However, among 23 subsectors, there are only few subsectors that benefitted from the openness variables. In 2014, 15 out of 23 subsectors experienced negative TFP growth. This implies that, in 2014, there were some macroeconomic issues regarding the contracted policy, for example, the subsidy removal and the basic electricity tariff. JEL Classification: C23, D24, F23, O14

Download Full-text

Knowledge spillovers, absorptive capacity and total factor productivity in China’s manufacturing firms

International Review of Applied Economics ◽

10.1080/02692171.2011.619970 ◽

2012 ◽

Vol 26 (4) ◽

pp. 533-547 ◽

Cited By ~ 11

Author(s):

Hailin Liao ◽

Xiaohui Liu ◽

Chengang Wang

Keyword(s):

Total Factor Productivity ◽

Absorptive Capacity ◽

Knowledge Spillovers ◽

Manufacturing Firms ◽

Factor Productivity

Download Full-text

Environmental Regulation Intensity, Foreign Direct Investment, and Green Technology Spillover—An Empirical Study

Sustainability ◽

10.3390/su11102718 ◽

2019 ◽

Vol 11 (10) ◽

pp. 2718 ◽

Cited By ~ 8

Author(s):

Jiangfeng Hu ◽

Zhao Wang ◽

Qinghua Huang ◽

Xiaoqin Zhang

Keyword(s):

Foreign Direct Investment ◽

Linear Model ◽

Environmental Regulation ◽

Total Factor Productivity ◽

Direct Investment ◽

Threshold Model ◽

Green Technology ◽

Factor Productivity ◽

Technology Spillover ◽

Static Threshold

Many researchers have studied the relationships among heterogeneous foreign direct investment (FDI), environmental regulation, and green total factor productivity. However, no research has been done on how different types of FDI can result in green technology spillover under different levels of environmental regulation intensity. To address this research gap, in this paper, we build a static linear panel model, a static panel threshold model, and a dynamic panel threshold model to investigate the environmental regulatory threshold effect of labor-based FDI and capital-based FDI in terms of their green technology spillover. Based on the measurement of green total factor productivity (GTFP) of 36 industry sectors in China from 2003 to 2015, we first compare the threshold effects of environmental regulation on green technology spillover between labor-based FDI and capital-based FDI with a static linear model and a static threshold model. The results show that environmental regulation is unable to significantly promote the green technology spillover of labor-based FDI. However, intensifying environmental regulation can reduce the negative impact of labor-based FDI on GTFP. The effect of environmental regulation on green technology spillover of capital-based FDI is more complex. In the static linear model, environmental regulation can significantly promote the green technology spillover of capital-based FDI. In the static threshold model, the green technology spillover of capital-based FDI exists only when the environmental regulation intensity is sufficiently low or sufficiently high. Finally, the dynamic threshold model is adopted for robustness check. The results show when the environmental regulation intensity is higher than a threshold, both types of FDI can indeed result in green technology spillover. In short, our results prove that to ensure that FDI results in green technology spillover, it is necessary to continue to strengthen environmental regulation.

Download Full-text