yasar_05

Emory University
Department of Economics
Working Papers

Title: Foreign Technology Transfer and Productivity: Evidence from a Matched Sample

Number: 05-14

Author: Mahmut Yasar and Catherine J. Morrison Paul

Issue Date: March 2005

Abstract: This study examines the causal effects of alternative forms of foreign technology transfer on the productivity of Turkish manufacturing plants through exporting, foreign direct investment and importing. We use propensity score matching techniques that limit implicit assumptions about plant homogeneity imbedded in standard estimates of such effects, and that control for selection bias (i.e. the endogeneity of international involvement variables). We find positive impacts of technology transfer through exporting, foreign direct investment, and importing on both total factor and labor productivity of the plants. Foreign direct investment has the greatest productivity impact, followed by exporting and importing, respectively. Our results also support the hypothesis in the literature that internationally involved plants exhibit better performance than domestic plants before matching.

Title:	Foreign Technology Transfer and Productivity: Evidence from a Matched Sample
Number:	05-14
Author:	Mahmut Yasar and Catherine J. Morrison Paul
Issue Date:	March 2005
Abstract:	This study examines the causal effects of alternative forms of foreign technology transfer on the productivity of Turkish manufacturing plants through exporting, foreign direct investment and importing. We use propensity score matching techniques that limit implicit assumptions about plant homogeneity imbedded in standard estimates of such effects, and that control for selection bias (i.e. the endogeneity of international involvement variables). We find positive impacts of technology transfer through exporting, foreign direct investment, and importing on both total factor and labor productivity of the plants. Foreign direct investment has the greatest productivity impact, followed by exporting and importing, respectively. Our results also support the hypothesis in the literature that internationally involved plants exhibit better performance than domestic plants before matching.

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