Proceedings of the 3rd International Conference on Business, Finance, Management and Economic (BizFAME 2024)

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The Role of Technological Transfer in Amplifying Foreign Direct Investment’s Impact on Economic Growth in Developing Countries

Authors
Hafizah Hammad Ahmad Khan1, *, Rosmaiza Abdul Ghani2, Muhammad Hanif Othman1, Handri Handri3, Azib Azib3
1Faculty of Business and Management, Universiti Teknologi MARA (UiTM) Cawangan Kedah, Kampus Sungai Petani, Merbok, Kedah, Malaysia
2Faculty of Business and Management, Universiti Teknologi MARA, Kampus Alor Gajah, Melaka, Malaysia
3Faculty of Economics and Business, Universitas Islam Bandung, Bandung, Indonesia
*Corresponding author. Email: hafizahhammad@uitm.edu.my
Corresponding Author
Hafizah Hammad Ahmad Khan
Available Online 22 August 2025.
DOI
10.2991/978-94-6463-827-1_10How to use a DOI?
Keywords
Foreign Direct Investment; Technological Transfer; Economic Growth; Absorptive Capacity; Developing Countries
Abstract

Foreign direct investment (FDI) is widely recognized as a pivotal driver for economic growth primarily due to its role in facilitating technological transfer. This study aims to examine the roles of FDI on economic growth in developing countries, by focusing on the mediating roles of technological transfer. Utilizing a narrative review approach, this study synthesizes peer-reviewed literature from the Scopus database, focusing on both empirical and theoretical contributions. A theoretical framework grounded in neoclassical growth theory and technology diffusion theory was developed to elucidate the relationship between FDI, technological transfer, and economic growth. In addition to the roles of technological transfer in amplifying the impact of FDI on economic growth, the framework also highlights the moderating roles of country’s absorptive capacity. This study contributes to the literature by elucidating the mechanisms underlying FDI-led growth and developing a framework that enables policymakers to make more strategically informed decisions.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 3rd International Conference on Business, Finance, Management and Economic (BizFAME 2024)
Series
Advances in Economics, Business and Management Research
Publication Date
22 August 2025
ISBN
978-94-6463-827-1
ISSN
2352-5428
DOI
10.2991/978-94-6463-827-1_10How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Hafizah Hammad Ahmad Khan
AU  - Rosmaiza Abdul Ghani
AU  - Muhammad Hanif Othman
AU  - Handri Handri
AU  - Azib Azib
PY  - 2025
DA  - 2025/08/22
TI  - The Role of Technological Transfer in Amplifying Foreign Direct Investment’s Impact on Economic Growth in Developing Countries
BT  - Proceedings of the 3rd International Conference on Business, Finance, Management and Economic (BizFAME 2024)
PB  - Atlantis Press
SP  - 120
EP  - 129
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-827-1_10
DO  - 10.2991/978-94-6463-827-1_10
ID  - Khan2025
ER  -