Title: FDI and technology transfer: the mediating role of market factors

Authors: Rogério Scabim Morano; Paulo Roberto Feldmann; Rafael Ricardo Jacomossi; Alcides Barrichello

Addresses: Instituto de Ciências Ambientais, Químicas e Farmacêuticas, Instituto de Ciência e Tecnologia, Universidade Federal de São Paulo (UNIFESP), Diadema, São Paulo, Brazil ' Programa de Pós-Graduação em Administração / Faculdade de Economia, Administração e Contabilidade (PPGA/FEA), Universidade de São Paulo (USP), São Paulo, Brazil ' Departamento de Administração, Faculdade de Tecnologia Termomecânica, Estrada dos Alvarengas, São Bernardo do Campo, São Paulo, Brazil ' Centro de Ciências Sociais e Aplicadas, Universidade Presbiteriana Mackenzie, São Paulo, Brazil

Abstract: Traditional FDI and technology transfer literature treats variables such as market factors, infrastructure, and education and training as predecessors to attract foreign investment, but it does so in an individualised way. This research aims to evaluate how these variables, when considered together, affect the attraction of FDI and technology transfer in the countries. The study used indicators of 137 countries, extracted from Global Competitiveness Report 2017-2018, published by World Economic Forum. Data were analysed using structural equation modelling. The research revealed that some market factors play a mediating role between the variables infrastructure and education and training regarding the attraction of FDI and technology transfer when all variables are analysed together in a single model. In addition, the size of domestic market is not necessarily an important variable in this context. This research contributes to the advancement of knowledge in the area since it shows an alternative and complementary way of understanding these relations.

Keywords: FDI; foreign direct investment; technology transfer; FDI attraction; structural equation modelling; world economic forum; international business strategy; globalisation; international markets; global development; internationalisation theory.

DOI: 10.1504/EJIM.2026.150362

European Journal of International Management, 2026 Vol.28 No.1, pp.166 - 187

Received: 18 Mar 2020
Accepted: 01 Oct 2020
Published online: 12 Dec 2025 *

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