Transfer of technology to developing countries.

Abstract

The transfer of technology to developing countries constitutes one of the major debates in the literature on development economics. The present empirical investigation is intended to " contribute to the large existing literature on technological transfer. Its major contribution lies in demonstrating rigorously that the integration of foreign technologies is greatly affected by the socio-economic conditions of the recipient countries. The present study attempts to identify the main socioeconomic characteristics involved in assimilating transferred technlogy. It first provides a quantifiable measure of the rate of technological absorption. Then, in presenting the selection of indicators, the general procedures followed in choosing the sample of countries are summarized and the principles guiding the choice of variables are examined. The model is based on multiple regression analysis, which is discussed in some detail. Another statistical method is used to explore the interdependence of the economic and social indicators, which provides more exact knowledge about their various interactions and lays the groundwork for the problem at hand. Three main indicators are identified that explain a significant-. sixty one percent of the total variance of the dependent variable. These main indicators are the rate of education, trade policies and the availability of certain consumer products. It is found that these variables express different and important dimensions of the third world economy. In general, the results reveal that the rate of technology integration varies greatly with the level of socio economic development. The findings of the investigation are analysed using new and efficient methods of diagnostic techniques, and are also seen within their theoretical perspectives'. The analysis of results is concluded with a discussion of intangible factors that cannot as yet be quantified; factors such as political and managerial quality and yet can be expected to have significant effects on the rate of technological integration.