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Multinational Corporations as a Catalyst for Local Industrial Development. The Case of Poland

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  • Carlo Altomonte
  • Laura Resmini

Abstract

In a recent model Markusen and Venables (1999) describe the conditions under which foreign direct investments (FDI) can act as a catalyst for local industrial development. We apply this framework to the case of Poland, allowing for the entry of multinationals in both intermediate and consumption goods industries. We check these hypotheses against empirical evidence, exploring agglomeration patterns of multinational and domestic firms at the regional level, and constructing an econometric model able to measure the interactions between the two classes of firms.Consistent with the theoretical predictions, we find robust evidence for the idea that multinationals may promote local industrial development through the generation of backward and forward linkages.

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Bibliographic Info

Article provided by FrancoAngeli Editore in its journal SCIENZE REGIONALI.

Volume (Year): 2002/2 (2002)
Issue (Month): 2 ()
Pages:

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Handle: RePEc:fan:scresc:v:html10.3280/scre2002-002002

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Cited by:
  1. Vassilis Monastiriotis, 2011. "Regional Growth Dynamics in Central and Eastern Europe," LEQS – LSE 'Europe in Question' Discussion Paper Series 33, European Institute, LSE.
  2. Laura CASI & Laura RESMINI, 2010. "Evidence on the determinants of foreign direct investment: the case of EU regions," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 1, pages 93-118, December.

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