We study North–South capital transfer and the diffusion of embodied technologies within a framework of intertemporal global welfare maximization. We show saddle path stability and characterize the steady state. We then examine the transition path by...

We show that the impact of capital goods imports and FDI inflows on economic convergence depends on the local capacity of emerging economies to absorb superior technologies.

In this paper we analyse productivity spillovers from foreign direct investment using firm-level panel data for U.K. manufacturing industries from 1992 to 1999. We investigate spillovers through horizontal, backward, and forward linkages; distinguish...

We hypothesize that North-South trade is associated with knowledge spillovers that create labor productivity gains depending on various aspects of Southern absorptive capacity. We use the novel World Input-Output Database (WIOD) that provides...

We hypothesize that North-South trade is associated with knowledge spillovers that create labor productivity gains depending on various determinants of Southern absorptive capacity. We use the novel World Input-Output Database (WIOD) that provides...

This paper analyzes a stylized model of international capital mobility and diffusion of embodied technologies from North to South. The South can fall behind in terms of technologies or get trapped in a situation in which it is unable to attract...

Innovation occurs when knowledge about unmet customer needs intersects with knowledge about technological solutions. Both knowledge types are often located outside the firm and need to be absorbed in order for innovation to occur. While there has...

We assess the role of capital goods imports and inflows of foreign direct investment (FDI) as transmission channels through which major emerging economies (BRICs, i.e., Brazil, Russian Federation, India and China) could catch up with advanced source...

This paper focuses on the role of absorptive capacity in determining whether or not domestic firms benefit from productivity spillovers from FDI using establishment level data for the UK. We allow for different effects of FDI on establishments...

We study the North-South diffusion of technologies embodied in internationally mobile capital in a framework of intertemporal global welfare maximization. Convergence of the growth rates of technical change in the North and South always occurs in...