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Foreign Technology Acquisition and Changes in the Real Exchange Rate.
- Source :
- World Economy; Apr2015, Vol. 38 Issue 4, p613-628, 16p, 7 Charts, 2 Graphs
- Publication Year :
- 2015
-
Abstract
- This paper uses plant‐level data from the manufacturing sector of Chile to investigate how changes in the real exchange rate affect the decision to purchase foreign technologies through licensing. Theoretically, a real depreciation has an ambiguous effect on foreign technology adoption. On the one hand, a real depreciation makes exports more competitive, and as exporters tend to adopt and use more advanced technologies, we should observe a higher propensity to import technologies among them. On the other hand, a real depreciation can also make imports of technology relatively more expensive. Thus, this question must be examined empirically. The empirical analysis shows that a real depreciation significantly increases the probability of using foreign technology licences for plants that export and for plants in the intermediate range of the size and productivity distribution. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 03785920
- Volume :
- 38
- Issue :
- 4
- Database :
- Complementary Index
- Journal :
- World Economy
- Publication Type :
- Academic Journal
- Accession number :
- 102375606
- Full Text :
- https://doi.org/10.1111/twec.12253