Paper Title :Moderating Role of Spill over Effects and the New NF Model Paradigm

Author :Antoine Matemane Mahirwe, Wei Long

Article Citation :Antoine Matemane Mahirwe ,Wei Long , (2018 ) " Moderating Role of Spill over Effects and the New NF Model Paradigm " , International Journal of Management and Applied Science (IJMAS) , pp. 87-94, Volume-4,Issue-6

Abstract : This study makes an attempt to open the black box of the mechanism and dynamics involved in the occurrence of spillovers by shedding light on their contribution in the process of generating competitiveness in a nation. Following other previous studies, this study argues that prosperity and competitiveness is no longer the exclusive privilege for endowed countries since it can be created. Borrowing from both NF and the DD models, this study proposes the Double NF and Multiple NF models which reflect on the connectivity of the host country’s economy while putting emphasis on the human aspect which plays a central role in the deployment and allocation of physical factors to generate competitiveness. In contrast to previous studies, this study argues that ACAP does not solely depend on the home base knowledge base or domestic diamond, the study uses the multiple NF model frame-work to show how the development of ACAP is influenced by its connectivity to other countries. The study makes an attempt to open the black box of spillovers mechanism to explain how the self-reinforcing process takes off once ACAP has reached a certain satisfactory level, leading to more FDI flowing in with snowball enhancing effects on existing ACAP and competitiveness, thus giving rise to a self-reinforcing process of FDI inflow. Keywords - Spillovers, Absorptive Capacity, Diamond Model, NF Model

Type : Research paper

Published : Volume-4,Issue-6

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