RETRACTED:The Role of Foreign Direct Investment, Technology Transfer and Spillover Effects on Economic Growth: A GTAP model

Document Type: Research Paper


Department of Environmental Economics, Science and Research Branch, Islamic Azad University, Tehran, Iran


The main objective of this paper is to investigate the effects of technology transfer through the imports of intermediate goods by developing countries developed countries with the emphasis on Iran economy. For this purpose, we used multi-sectoral and multi–regional computable general equilibrium GTAP model (multi-sectoral and multi-regional CGE model). The paper examined the effect of a ten percent productivity shock in high-tech industries of industrial countries on economic sectors of Iran. The result shows that technology transfer embodied in Iran’s imports of intermediate goods leads to increase in outputs and decrease in prices. Factors such as absorptive capacity, structural similarity and effectiveness contributed to the spillover effects of technological improvements in Iran.


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