A thesis submitted in partial fulfillment of requirements for the degree of Master of Engineering, School of Engineering and Technology

Thesis (M.Eng.) - Asian Institute of Technology, 1990

Technology transfer through direct foreign investment has been recognized as playing a major role in accelerating the transition of developing countries to modern industrial economic societies. The main emphasis of this t he study is to review the theory of technology transfer through direct foreign investment and derive mathematical models to assess the impact of technology transfer through direct foreign investment on the product output effect , employment effect, technical efficiency , return to scale , and export effect in electronic and electrical appliances industry in Taiwan . Results of the study indicate that technology transfer through direct foreign investment has contributed to positive product output effect , positive employment effect , greater technical efficiency , inclusive result on return to scale, and growth of export. It is obviously seen that technology transfer through direct foreign investment helped significantly in the development of Taiwan ' s electronic and electrical appliances industry through technology brought in. In the long run , efforts should be intensified to catch up not only by selecting existing technologies that are accessible and appropriate to the technological status of Taiwan but also improving it quickly for use by business and through more research and development in order to get more profit and improve competitiveness in the world market.