We analyze the impacts of two international technology transfer channels, foreign direct investment (FDI) and licensing, on total factor productivity (TFP) growth in a sample of 88 countries for the period 1980-2006. Comparing with Pessoa (2008), we bring here three original contributions: we include in the econometric model specification a variable which captures the composition of foreign capital flows; our sample comprises poor and developing countries too, not only OECD's; we offer a treatment for the typical endogeneity problem found in growth regressions which have as explanatory variables measures like countries' "financial openness".
