Transferring total factor productivity of production by technology spillover

Technology can be considered as a component which is capable of transferring productivity from one country to another or from one region to another. Technology spillover is one of factors which can play a fundamental role in the transmission of productivity. Foreign technology spillover can be achieved in favor of foreign direct investment and importing technological machines. But to make use of technology spillover we need to provide necessary infrastructures such as training skilled and professional human resources and rising R & D costs. To accomplish this purpose, selected information has been used from developed countries of European Union for the period 2005-2009. Generalized least square (GLS) have been used to estimate the effects of variables on total factor productivity of production. Research findings indicate that variables have significant effect on total factor productivity of production about studied countriesJEL Classification: C33 ,C63 ,E22 ,O40

Keywords:

Total factor productivity of production , Human Capital , Foreign direct investment , R & D , Importing capital goods