2003 Fiscal Year Final Research Report Summary
Technology transfer to the transition economics : The economics of joint ventures in Vietnam
| Project/Area Number |
14530021
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| Research Category |
Grant-in-Aid for Scientific Research (C)
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| Allocation Type | Single-year Grants |
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| Section | 一般 |
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| Research Field |
経済理論
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| Research Institution | Waseda University |
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Principal Investigator |
TRAN Van tho Waseda University, School o f Social Sciences, Professor, 社会科学総合学術院・社会科学部, 教授 (70227669)
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| Project Period (FY) |
2002 – 2003
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| Keywords | transition economics / technology transfer / multinational corporations / joint ventures / state-owned enterprises (SOEs) / enclaves / globalization |
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| Research Abstract |
Technology transfer from multinational corporations (MNCs) to a developing country is strongly influenced by policies of the host government which on the one hand provides incentives to MNCs but on the other imposes many regulations and performance requirements on MNC operations. If the developing country is at the same time a country in the process of transition from a socialist system to a market economy, the problem is much more complicated. The dominance of inefficient state-owned enterprises (SOEs), the weakness of private sector, the underdevelopment of markets, and the lack of knowledge on the side of policy makers on market mechanism tend to induce MNCs to set up fully foreign owned subsidiaries instead of joint ventures, and rely on imports of their intermediate goods instead of local procurements. Foreign subsidiaries therefore appear to be enclaves in the national economy. These features limit the transfer of technology from MNCs to the economy in transition.
These points have been shown in this study on the case of Vietnam. The paper also suggests the drastic reforms of SOEs, the nourishment of the private sector, and the maintenance of a stable investment environment for promoting the transfer of technology from MNCs to the economy in transition. Along with increasing pressure from the globalization, the problems on the side of transition economies are expected to be solved, and thus the transfer of technology in such countries as Vietnam would be smoother in the future.
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