Browsing by Author "Chen, Zhijie"

Obtaining advanced technology through FDI technology spillover is generally regarded as a crucial channel for transition economies to achieve technological progress. However, in the actual research, the efficiency of technological progress and the intensity of FDI technology spillover in Central and Eastern Europe exhibit noticeable spatial differences, closely related to different countries’ different innovation capacities. Existing literature has proved the existence of FDI technology spillovers and theoretically discussed the implications of innovation capacities on FDI technology spillovers. Nevertheless, this moderating effect’s nonlinear characteristics and threshold effects have not yet been sufficiently explored in transition countries in Central and Eastern Europe. Therefore, this study utilises the macroeconomic data of 11 transition countries in Central and Eastern Europe from 2005 to 2019 to construct a threshold regression model to analyse the moderating effect of innovation capacities on FDI technology spillovers. According to the empirical findings, the country-level innovation capacity of transition countries in Central and Eastern Europe has a significantly and positively moderating effect on FDI technology spillovers, with an apparent single threshold characteristic. This moderating power diminishes when the innovation capacity crosses the threshold. A striking finding is that the threshold effect of the innovation capacities’ moderating effects on FDI technology spillovers disappears when differences in resource endowments between countries are considered.