On the relationship between technology transfer and economic growth in Asian economies

In this paper, FDI and licensing are incorporated using a model where increasing the international transmission of technology adds to efficient production in the receiving country and results in higher welfare. The model is then tested with data from a selection of 11 Asian economies and a strong positive relationship is found between FDI, licensing and economic growth. The policy recommendations from both our theoretical model and empirical results are that Asian economies should improve their production efficiency to host international technologies to maximise the benefits of international technology transfers.