The main aim of this report is to examine the function of multinational corporations (MNCs) as the creator and diffuser of new and better technologies. If these companies satisfy this attributed role, then they are likely to generate some spillovers to domestic businesses in host economies. Theoretical and empirical studies suggest that domestic technological capability is also crucial in this process. The research deals with the question of productivity spillovers from the activity of MNCs, whether size of the recipient businesses and the R&D intensity make a difference in this regard, and do spillovers change by time. The analysis relies on a longitudinal data for the Turkish manufacturing industry in 28 3- digit level industries over the 1983-2000 period. The outcomes indicate that the spillovers from MNCs for the domestic sector of the Turkish manufacturing industry distinguish when it comes to size of the recipient domestic companies and by time. Despite the fact that, the evidence tends to speak in favor of unfavorable spillovers in the Turkish manufacturing industry.
The purpose of this document is to assess empirically the role of Multinational Corporations as the creator and diffuser of latest technologies in the context of the Turkish manufacturing industry. We’ll talk about this matter with regards to the spillover effects those firms generate on domestically owned firms…
Source: Copenhagen Business School
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