Effect of Spillovers on Foreign Versus Domestic Industry Leadership in a Developing Economy

@inproceedings{Costantini2011EffectOS,
  title={Effect of Spillovers on Foreign Versus Domestic Industry Leadership in a Developing Economy},
  author={James A. Costantini},
  year={2011}
}
An often contentious issue is how spillovers affect foreign versus domestic industry leadership in a developing economy, for instance, whether policies favour domestic firms. To address such issues it is important to understand the baseline effect of spillovers on industry leadership, which I focus on. I develop a formal model that compares the effect of different types of spillovers on industry leadership. I find that spillovers driven by absorptive capacity, versus by demonstration effects… CONTINUE READING

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