The Economic Impact of Technology Transfer in Developing Countries
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The aim of this paper is to offer an updated survey of theoretical models and empirical studies
analysing the impact of technology transfer in developing countries. The transfer of technology
from developed to developing countries depends on trade liberalization and internationalization of
production through various channels. A critical discussion will be presented comparing the positive
implications of technology transfers (positive spillovers, technological catching-up, growing complementarities
with domestic firms) with negative implications (displacement of workers, negative
welfare implications, competitive effects with domestic firms). Moreover the nature of transferred
technologies together with the different institutional ‘absorptive capacities’ and sectoral specializations
will be considered.
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