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Author: | Glass, A.J. Saggi, K. |
Title: | Multinational firms and technology transfer |
Journal: | Scandinavian Journal of Economics
2002 : VOL. 104:4, p. 495-513 |
Index terms: | Multinational companies Pay Technology transfer |
Language: | eng |
Abstract: | An oligopoly model is constructed in which a multinational company has a superior technology compared to local companies. Workers employed by the multinational company acquire knowledge of its superior technology. The multinational may pay a wage premium to prevent local companies from hiring its workers and thus gaining access to their knowledge. In this setting, the host government has an incentive to attract FDI due to technology transfer to local companies or the wage premium earned by employees of the multinational company. |
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