Foreign Direct Investment and Catching Up of New EU Member States: Is There a Flying Geese Pattern?
AbstractThe paper verifies the existence of the Flying Geese Model (FGM) in the case of inward FDI in Central European Countries (CECs) which entered the EU, in what way and to what extent FDI has contributed to the catching up, i.e. to the restructuring process and productivity growth in CECs manufacturing. The analysis shows that FDI is a very important vehicle of manufacturing sector restructuring and productivity growth in CECs, along the lines of FGM. Foreign investment enterprises are increasingly engaged in high and medium-high tech industries, much more than domestic enterprises. Also, productivity growth in CEC manufacturing is generally positively correlated with foreign penetration. However, high foreign penetration has a negative impact on productivity growth in high and medium-high tech industries. This is because foreign investment enterprises are mostly engaged in lower end technological segments of these industries and will only change when domestic absorption capacity of CECs will upgrade. At the existing stage of development in CECs, the catching up process via FDI, thus, takes place predominantly in industries at the middle of the technological intensity spectrum.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoArticle provided by Duncker & Humblot, Berlin in its journal Applied Economics Quarterly.
Volume (Year): 53 (2007)
Issue (Month): 2 ()
Contact details of provider:
Web page: http://www.duncker-humblot.de
Find related papers by JEL classification:
- F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
- O14 - Economic Development, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Leitão, Nuno Carlos, 2012. "The impact of trade on economic growth," MPRA Paper 37425, University Library of Munich, Germany.
- repec:rej:journl:v:16:y:2013:i:47:p:17-28 is not listed on IDEAS
- Jarko Fidrmuc & Reiner Martin, 2011. "FDI, Trade and Growth in CESEE Countries," Focus on European Economic Integration, Oesterreichische Nationalbank (Austrian Central Bank), issue 1, pages 70-89,112-1.
- Peter A. Petri, 2010.
"The Determinants of Bilateral FDI: Is Asia Different?,"
12, Brandeis University, Department of Economics and International Businesss School.
- Petri, Peter A., 2012. "The determinants of bilateral FDI: Is Asia different?," Journal of Asian Economics, Elsevier, vol. 23(3), pages 201-209.
- Lefilleur, Julien & Maurel, Mathilde, 2010. "Inter- and intra-industry linkages as a determinant of FDI in Central and Eastern Europe," Economic Systems, Elsevier, vol. 34(3), pages 309-330, September.
- Nuno Carlos LEITÃO, 2012. "ECONOMIC gROWTH, GLOBALIZATION AND TRADE," Management Research and Practice, Research Centre in Public Administration and Public Services, Bucharest, Romania, vol. 4(3), pages 18-24, September.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Deborah Anne Bowen).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.