Cover -- Title Page -- Contents -- Foreword -- Acknowledgments -- Contributors -- Abbreviations and Acronyms -- 1 Lessons from Empirical Research on International Technology Diffusion through Trade and Foreign Direct Investment -- Introduction -- Technology Diffusion through Trade -- Access to Technologies through Imports -- Access to Technologies through Exports -- Foreign Direct Investment as a Conduit of Knowledge -- Openness to Trade and FDI: Interactions and Procompetitive Effects -- Policy Implications of Research Findings -- Asymmetric Information -- Market Power -- Externalities -- Technology-Related Trade Policies and International Technology Diffusion -- FDI-Related Policies -- General versus Specific Domestic Technology-Related Subsidy Policies -- Intellectual Property Rights and Technology Transfer -- Conclusion: Main Messages and Outstanding Research Questions -- Notes -- References -- PART 1 Literature Surveys -- 2 Econometric Versus Case Study Approaches to Technology Transfer -- Introduction -- Modes of Technology Transfer for Individual Firms -- Importation of New Equipment or Purchase of Locally Produced Equipment -- Knowledge Obtained in Market Transactions -- Knowledge Obtained as a Byproduct of Market Transactions -- Determinants of the Demand for and Productivity of Technology Transfers -- The Case Study Literature -- Case Studies of Technology Transfer in Countries with Trade Restrictions -- Case Studies in Export-Oriented Countries -- Case Studies in Export-Oriented Economies -- Exports and Productivity -- Foreign Direct Investment -- Labor Mobility -- Summary and Conclusions -- Notes -- References -- 3 Foreign Direct Investment, Linkages, and Technology Spillovers -- Introduction -- Effects of FDI on Linkages and Technology Transfer -- Demonstration Effects -- Labor Turnover -- Linkages and Vertical Technology Transfer.

Do Horizontal Spillovers from FDI Exist? -- Concluding Remarks -- References -- 4 Plant- and Firm-Level Evidence on "New" Trade Theories -- Introduction -- Static Results: Mark-Ups, Scale, and Productivity -- Pricing -- Theory -- Evidence -- Firm Size Distribution and Its Effects on Productivity -- Theory -- The Evidence, Part 1: Size Distributions and Trade -- The Evidence, Part 2: Trade-Induced Size Adjustments and Scale Efficiency -- The Evidence, Part 3: Market Shares and Productivity Effects -- Other Intrafirm Productivity Gains -- The Evidence, Part 1: Product Variety and Productivity -- The Evidence, Part 2: Import Discipline Effects -- The Evidence, Part 3: Trade and Technology Diffusion -- Summary -- Transition Dynamics -- Export Dynamics -- Theory -- Evidence -- Industrial Evolution -- Theory -- The Evidence, Part 1: Descriptive Studies -- The Evidence, Part 2: A Structural Model -- An Agenda for Future Research -- Notes -- References -- PART 2 Foreign Trade and Productivity -- 5 On the Quantity and Quality of Knowledge: The Impact of Openness and Foreign R&D on North-North and North-South Technology Spillovers -- Introduction -- Analytical Framework -- North-North Trade -- Empirical Implementation -- Empirical Results -- Comparison with the Literature -- North-South Trade -- Empirical Implementation -- Empirical Results -- Comparison with the Literature -- Conclusion -- Notes -- References -- 6 The Knowledge Content of Machines: North-South Trade and Technology Diffusion -- Introduction -- A Model of Knowledge Production and Choice of Machines -- Supply -- Demand -- Data and Sample Countries -- Measuring Technological Complexity -- Trends of Unit Value Indexes -- Do Embodied Imported Technologies Boost Productivity? Econometric Analysis -- Conclusion -- Chapter 6 Annex A: Matching between Machines and Products.

Chapter 6 Annex B: Empirical Derivation of Total Factor Productivity -- Measuring Changes in Total Factor Productivity -- The Data -- Chapter 6 Annex C: Description of Variables, Sources of Variables, and Descriptive Statistics -- Chapter 6 Annex D -- Notes -- References -- 7 Exports and Economic Performance: Evidence from a Panel of Chinese Enterprises -- Introduction -- Are Exporters and Nonexporters Different? -- Data and Sample Characteristics -- Characteristics of Exporting Firms -- Do Exporters Perform Better Than Nonexporters? -- Do Exporters Learn from Exporting? -- Specification and Identification -- Basic Results -- Controlling for Export Histories -- Conclusions -- Chapter 7 Annex A: Data Construction -- Notes -- References -- PART 3 Foreign direct investment, technology transfer, and productivity -- 8 Foreign Investment and Productivity Growth in Czech Enterprises -- Introduction -- Channels of Technology Transfer -- Profile of Czech Firms -- Estimation Procedure -- Results -- Concluding Remarks -- Notes -- References -- 9 Technological Leadership and the Choice of Entry Mode by Foreign Investors -- Introduction -- Related Literature -- Theory -- Empirical Evidence -- Hypotheses -- Data and Statistical Models -- Empirical Findings -- Comparison with Earlier Studies -- Summary Statistics -- Testing the Hypotheses -- Concluding Remarks -- Notes -- References -- 10 Does Foreign Direct Investment Increase the Productivity of Domestic Firms? In Search of Spillovers through Backward Linkages -- Introduction -- Overview of Spillover Channels -- Data and Estimation Strategy -- Foreign Direct Investment in Lithuania -- Data Description -- Estimation Strategy -- Estimation Results from a Model in Differences -- Baseline Specification -- Full versus Partial Foreign Ownership -- Robustness Checks -- Conclusions -- Notes -- References.

11 Product Quality, Productive Efficiency, and International Technology Diffusion: Evidence from Plant-Level Panel Data -- Introduction -- The Literature -- The Contribution of This Chapter -- Methodology -- Determinants of Performance -- Determinants of Activity -- Inference -- An Empirical Model -- The Demand System -- Estimation -- Determinants of Activity -- Empirical Results -- Determinants of Performance -- Demand Parameters -- Determinants of Product Quality -- Determinants of Marginal Cost -- A Robustness Check -- Determinants of Activity -- Conclusion -- Chapter 11 Annex A: Demand Parameters and Performance Equations -- Chapter 11 Annex B: Activity Patterns and Determinants -- Notes -- References -- 12 Market Discipline and Corporate Efficiency: Evidence from Bulgaria -- Introduction -- The Literature on Competition and Corporate Efficiency -- Import Competition -- Financial Discipline -- Changes in Competition Policies and Market Structure -- Privatization -- Economic Reforms in Bulgaria -- The Empirical Framework -- The Data -- Results -- Conclusions -- Notes -- References -- 13 Innovation in Mexico: NAFTA Is Not Enough -- Introduction -- Mexican Innovation and Technological Progress Since the 1960s -- How Trade and Foreign Direct Investment Affect Innovation and Technological Progress -- National Learning Capacity: The Missing Complement -- Where Does Mexico Stand in Innovation Effort? -- How Much Should Mexico Spend on Innovation? -- Why Is Innovation Effort So Low in Mexico? -- Nonappropriability -- Lumpiness and Scale Economies That Dictate Specialization -- Innovation, Diffusion, and Application That Require Collaboration among Many Institutions and Firms -- The Efficiency of Knowledge Generation -- Structural Change in Trade but Not in Innovation -- The National Innovation System: A Closer Look.

Firm-Firm Links, Public Research Centers, and State-Owned Enterprises -- Universities -- Supporting Capital and Labor Markets and Intellectual Property Regimes -- Conclusion -- Notes -- References -- Index -- Back Cover.