Foreign Ownership, Technological Capabilities and Clothing Exports in Sri Lanka

12 Pages Posted: 21 May 2008


Drawing on recent developments in applied international trade and innovation and learning in developing countries, this paper examines the links between firm-level export performance, foreign ownership and the acquisition of technological capabilities in a sample of 205 clothing enterprises in Sri Lanka. Econometric analysis indicates that foreign ownership, firm size, human capital, technological capabilities and geographical location are all positively associated with export shares. Furthermore, higher levels of technological capability are associated with larger firm size, university-level manpower and in-house technological effort. Micro-level investigations are a complementary input to developing policies for promoting private sector competitiveness in outward-oriented developing countries.

Keywords: Foreign investment, technology, exports, Sri Lanka

JEL Classification: F14, O31, L67

Suggested Citation

Wignaraja, Ganeshan, Foreign Ownership, Technological Capabilities and Clothing Exports in Sri Lanka. Journal of Asian Economics, Vol. 19, 2008, Available at SSRN:

Ganeshan Wignaraja (Contact Author)

Asian Development Bank ( email )

6 ADB Avenue, Mandaluyong City 1550
Metro Manila

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