Assessing the roles that absorptive capacity and economic distance play in the foreign direct investment-productivity growth nexus

Philip Bodman, Thanh Lê · 2011 · Applied Economics

Summary. Foreign direct investment boosts productivity in host countries through two main channels: technology transfer and education investment. The study finds that geographical distance between investing and host countries reduces the effectiveness of both trade and FDI in transferring technology and knowledge. Countries with stronger absorptive capacity—built through education—benefit more from FDI. Technology flows work in both directions between investing and host nations.

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@article{bodman-2011-assessing-roles-absorptive-capacity-economic,
  title   = {Assessing the roles that absorptive capacity and economic distance play in the foreign direct investment-productivity growth nexus},
  author  = {Philip Bodman and Thanh Lê},
  journal = {Applied Economics},
  year    = {2011},
  doi     = {10.1080/00036846.2011.613789},
  url     = {https://doi.org/10.1080/00036846.2011.613789}
}

TY  - JOUR
TI  - Assessing the roles that absorptive capacity and economic distance play in the foreign direct investment-productivity growth nexus
AU  - Philip Bodman
AU  - Thanh Lê
JO  - Applied Economics
PY  - 2011
DO  - 10.1080/00036846.2011.613789
UR  - https://doi.org/10.1080/00036846.2011.613789
ER  - 

Details

DOI

10.1080/00036846.2011.613789

Countries

Australia

Regions

Oceania

Categories

innovation-networks, policy, general-innovation

Added

2026-04-28