Concerns over the viability of the existing framework for determining technological spillovers vis-à-vis MNCs have grown, mainly because the predominant framework characterized by theories of production function did not provide consistent findings on the link between spillover occurrence and FDIs.
Gachino emphasized that such inconsistencies arise from varying methodologies as well as specificities in firms, industries and nations.
The study by Gachino is in tune with the current context describing the lack of consistency in findings on the spillover occurrence-FDI connection using the predominant framework on theories of production function.
The spillover literature takes into account variables related to variations in time, types of industries, and those related to space and location, and endogenous technological changes. Continue reading...