By Hasan Gurak (2001)

The purpose of this study is to shed some light on "adverse" impacts of transfer of commercial technology through FDI to LDCs. Analysis focuses more on the hidden costs arising from the use of restrictive clauses contained in package deals. As will be seen, there are imperfect markets for technology transfer, and transactions in the technology transfer often take the form of "package deals" accompanied by explicit written or implicit unwritten contractual clauses.