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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.

Suggested Citation

  • Carlo Altomonte & Laura Resmini, 2002. "Multinational Corporations as a Catalyst for Local Industrial Development. The Case of Poland," SCIENZE REGIONALI, FrancoAngeli Editore, vol. 2002(2).
    • Handle: RePEc:fan:scresc:v:html10.3280/scre2002-002002
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    Citations

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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 Resmini, 2014. "Patterns of FDI in Southern European Periphery: a Tale of Missing FDI?," ERSA conference papers ersa14p543, European Regional Science Association.
    3. Marcella Nicolini & Laura Resmini, 2006. "The Impact of Mnes on Domestic Firms in CEECS: A Micro-Econometric Approach," ERSA conference papers ersa06p411, European Regional Science Association.
    4. Kippenberg, Eva, 2005. "Sectoral linkages of foreign direct investment firms to the Czech economy," Research in International Business and Finance, Elsevier, vol. 19(2), pages 251-265, June.
    5. Altomonte, Carlo & Guagliano, Claudia, 2003. "Comparative study of FDI in Central and Eastern Europe and the Mediterranean," Economic Systems, Elsevier, vol. 27(2), pages 223-246, June.
    6. Jota Ishikawa & Eiji Horiuchi, 2012. "Strategic Foreign Direct Investment in Vertically Related Markets," The Economic Record, The Economic Society of Australia, vol. 88(281), pages 229-242, June.
    7. Vassilis Monastiriotis, 2014. "Regional Growth and National Development: Transition in Central and Eastern Europe and the Regional Kuznets Curve in the East and the West," Spatial Economic Analysis, Taylor & Francis Journals, vol. 9(2), pages 142-161, June.
    8. Laura Casi & Laura Resmini, 2014. "Spatial complexity and interactions in the FDI attractiveness of regions," Papers in Regional Science, Wiley Blackwell, vol. 93, pages 51-78, November.
    9. 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.

    More about this item

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F15 - International Economics - - Trade - - - Economic Integration
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • P20 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - General

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