Evidence of knowledge spillovers from the natural resources sector in least developed countries

Abstract

This research aimed to investigate the evidence of the existence of knowledge spillovers from the natural resources sector in least developed countries so as to .Research model was defined through extensive literature review of prior studies on spillovers. Using a survey questionnaire developed by the researcher, an online survey together with email survey were administered to suppliers of a mining firm in Ghana, Mali, and Tanzania. The responses were then collected and analysed by means of non-parametric Chi-Square method to test ten hypotheses on knowledge spillovers.The results of the study highlights that LDCs may not be as backward as the definition of LDCs make us to believe. The result showed that the technology gap between host country firms and the MNE was very small which was an indication that spillovers were likely to be present. With regard to spillovers it was found that spillovers through worker mobility were more likely through movement of workers between suppliers firms and less rom the MNE to suppliers firm. Regarding imitation by supplier firms, we found that supplier firms imitated each other as well as the MNE. Imitation of the MNE was more in the support functions such as management. Assistance from the MNE was not a high as expected but this is likely due to the higher than expected capacity of the country and suppliers firms.