Innovative and Absorptive Capacity of International Knowledge : An Empirical Analysis of Productivity Sources in Latin American Countries

Castillo, Leopoldo Laborda; Salem, Daniel Sotelsek; Guasch, Jose Luis

dc.creator	Castillo, Leopoldo Laborda
dc.creator	Salem, Daniel Sotelsek
dc.creator	Guasch, Jose Luis
dc.date	2012-03-19T17:28:26Z
dc.date	2012-03-19T17:28:26Z
dc.date	2012-01-01
dc.date.accessioned	2023-02-17T20:49:13Z
dc.date.available	2023-02-17T20:49:13Z
dc.identifier	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20120103140509
dc.identifier	http://hdl.handle.net/10986/3217
dc.identifier.uri	http://localhost:8080/xmlui/handle/CUHPOERS/243553
dc.description	This paper examines two sources of global knowledge spillovers: foreign direct investments and trade. Empirical evidence demonstrates that foreign direct investment and trade can contribute to overall domestic productivity growth only when the technology gap between domestic and foreign firms is not too large and when a sufficient absorptive capacity is available in domestic firms. The paper proposes the terms research and development and labor quality to capture the innovative and absorptive capacity of the country. The spillover effects in productivity are analyzed using a stochastic frontier approach. This productivity (in terms of total factor productivity) is decomposed using a generalized Malmquist output oriented index, in order to evaluate the specific effect in technical change, technical efficiency change, and scale efficiency change. Using country-level data for 16 Latin American countries for 1996-2006, the empirical analysis shows positive productivity spillovers from foreign direct investment and trade only when the country has absorptive capacity in terms of research and development. Foreign direct investment and trade spillovers are found to be positive and significant for scale efficiency change and total productivity factor change.
dc.language	English
dc.relation	Policy Research working paper ; no. WPS 5931
dc.rights	CC BY 3.0 IGO
dc.rights	http://creativecommons.org/licenses/by/3.0/igo/
dc.rights	World Bank
dc.subject	AGRICULTURE
dc.subject	CAPABILITY
dc.subject	CAPABILITY BUILDING
dc.subject	CAPITAL EXPENDITURES
dc.subject	COMPARATIVE ADVANTAGE
dc.subject	COMPARATIVE ECONOMICS
dc.subject	COMPETITIVENESS
dc.subject	COUNTRY RISK
dc.subject	DEVELOPING COUNTRIES
dc.subject	DEVELOPMENT ECONOMICS
dc.subject	DEVELOPMENT POLICY
dc.subject	DIRECT FOREIGN INVESTMENT
dc.subject	DOMESTIC FIRMS
dc.subject	DOMESTIC MARKET
dc.subject	E-MAIL
dc.subject	ECONOMETRICS
dc.subject	ECONOMIC DEVELOPMENT
dc.subject	ECONOMIC EFFICIENCY
dc.subject	ECONOMIC GROWTH
dc.subject	ECONOMIC RESEARCH
dc.subject	ECONOMIC SYSTEMS
dc.subject	ECONOMICS
dc.subject	ELASTICITY
dc.subject	ELECTRICITY
dc.subject	EQUIPMENT
dc.subject	EQUITY CAPITAL
dc.subject	EXCHANGE RATE
dc.subject	EXCHANGE RATES
dc.subject	EXCHANGE TRANSACTIONS
dc.subject	EXPORTS
dc.subject	EXTERNALITIES
dc.subject	FDI
dc.subject	FINANCE CORPORATION
dc.subject	FIXED CAPITAL
dc.subject	FIXED COSTS
dc.subject	FIXED INVESTMENT
dc.subject	FOREIGN DIRECT INVESTMENT
dc.subject	FOREIGN DIRECT INVESTMENTS
dc.subject	FOREIGN EXCHANGE
dc.subject	FOREIGN FIRM
dc.subject	FOREIGN FIRMS
dc.subject	FOREIGN INVESTMENT
dc.subject	FOREIGN INVESTORS
dc.subject	GDP
dc.subject	GLOBAL DEVELOPMENT FINANCE
dc.subject	GLOBAL ECONOMY
dc.subject	GLOBAL KNOWLEDGE
dc.subject	GROSS FIXED CAPITAL FORMATION
dc.subject	GROSS VALUE
dc.subject	GROWTH CYCLES
dc.subject	GROWTH THEORIES
dc.subject	HOST COUNTRIES
dc.subject	HOST COUNTRY
dc.subject	HUMAN CAPITAL
dc.subject	INCOME
dc.subject	INDUSTRIAL COUNTRIES
dc.subject	INDUSTRIAL DEVELOPMENT
dc.subject	INDUSTRIAL ECONOMICS
dc.subject	INDUSTRIALISING ECONOMIES
dc.subject	INEFFICIENCY
dc.subject	INNOVATION
dc.subject	INTERNATIONAL COMPETITIVENESS
dc.subject	INTERNATIONAL ECONOMICS
dc.subject	INTERNATIONAL FINANCE
dc.subject	INTERNATIONAL FINANCIAL
dc.subject	INTERNATIONAL LABOUR ORGANIZATION
dc.subject	INTERNATIONAL STANDARD
dc.subject	INTERNATIONAL TRADE
dc.subject	KNOWLEDGE GENERATION
dc.subject	LABOR COSTS
dc.subject	LABOR FORCE
dc.subject	LABOR MOBILITY
dc.subject	LABOUR
dc.subject	LONG-TERM INVESTMENTS
dc.subject	MANUFACTURING
dc.subject	MANUFACTURING FIRMS
dc.subject	MANUFACTURING SECTOR
dc.subject	MARGINAL COST
dc.subject	MARKET POTENTIAL
dc.subject	MARKET STRUCTURE
dc.subject	MATERIAL
dc.subject	MNE
dc.subject	MULTINATIONAL CORPORATIONS
dc.subject	MULTINATIONAL ENTERPRISE
dc.subject	MULTINATIONAL ENTERPRISES
dc.subject	NATURAL RESOURCE
dc.subject	NATURAL RESOURCES
dc.subject	NEW TECHNOLOGY
dc.subject	OPEN ACCESS
dc.subject	OPEN ECONOMY
dc.subject	OUTPUTS
dc.subject	PHONE
dc.subject	POTENTIAL OUTPUT
dc.subject	PRIVATE INVESTMENT
dc.subject	PRIVATE SECTOR
dc.subject	PRIVATIZATION
dc.subject	PRODUCTION FUNCTION
dc.subject	PRODUCTION FUNCTIONS
dc.subject	PRODUCTIVITY
dc.subject	PRODUCTIVITY GROWTH
dc.subject	PUBLIC POLICY
dc.subject	R&D
dc.subject	RAPID EXPANSION
dc.subject	REAL ESTATE
dc.subject	REINVESTMENT
dc.subject	REINVESTMENT OF EARNINGS
dc.subject	RESULT
dc.subject	RESULTS
dc.subject	RETAIL TRADE
dc.subject	SUBSTITUTION EFFECT
dc.subject	TECHNOLOGICAL CHANGES
dc.subject	TECHNOLOGICAL PROGRESS
dc.subject	TECHNOLOGY GAP
dc.subject	TECHNOLOGY SPILLOVER
dc.subject	TECHNOLOGY SPILLOVERS
dc.subject	TECHNOLOGY TRANSFER
dc.subject	TECHNOLOGY TRANSFERS
dc.subject	TIME PERIOD
dc.subject	TIME PERIODS
dc.subject	TOTAL FACTOR PRODUCTIVITY
dc.subject	TOTAL FACTOR PRODUCTIVITY GROWTH
dc.subject	TRADE POLICIES
dc.subject	TRADE POLICY
dc.subject	TRADE REFORMS
dc.subject	TRANSITION COUNTRIES
dc.subject	TRANSITION ECONOMIES
dc.subject	UNEMPLOYED
dc.subject	UNSKILLED LABOR
dc.subject	USES
dc.subject	VALUE ADDED
dc.subject	VARIABLE COSTS
dc.subject	WEB
dc.subject	WORLD DEVELOPMENT INDICATORS
dc.subject	WORLD TRADE
dc.subject	WORLD TRADE ORGANIZATION
dc.title	Innovative and Absorptive Capacity of International Knowledge : An Empirical Analysis of Productivity Sources in Latin American Countries
dc.type	Publications & Research :: Policy Research Working Paper
dc.coverage	Latin America & Caribbean