Technology Transfer and National Efficiency: Does Absorptive Capacity Matter?

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2018-04

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Blackwell Publishing Ltd

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This paper explores the moderating effects of absorptive capacity on the role of technology transfer in explaining cross-country differences in national efficiency. We used data from 18 sub-Saharan Africa countries over the period 1970–2010 and adopted a stochastic frontier approach. The empirical results show that the coefficients of the interaction terms for measures of technology transfer (trade and machinery imports) and absorptive capacity (relative R&D) are negative and statistically significant. This suggests that absorptive capacity positively influences the degree to which technology transfer affects the efficiency of countries in sub-Saharan Africa. © 2018 The Authors. African Development Review © 2018 African Development Bank

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