Foreign Direct Investment And Technology Change

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Foreign Direct Investment And Technology Change

Author Info

Martin Srholec

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Martin Srholec

Abstract

Paper focuses on foreign direct investment (FDI) in manufacturing in the Czech Republic, Hungary, Poland and Slovakia (CECs), where FDI penetration jumped to remarkable high levels in recent years. Foreign investment enterprises are more profitable, export oriented and technologically superior compared to domestic companies. FDI is perceived as a main channel of technology transfer and potential source of spillovers in host economy, though, estimates of technology transfer show mixed picture in the CECs. FDI spurs restructuring and productivity growth in foreign investment enterprises but FDI rather crowds-out domestic companies as spillovers are confirmed only to domestic companies with sufficient technological absorptive capacity. Paper concludes with some policy implications regarding FDI promotion and innovation policy.

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Publisher Info
Article provided by University of Economics, Prague in its journal Politická ekonomie.

Volume (Year): 2003 (2003)
Issue (Month): 5 ()
Pages:
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Handle: RePEc:prg:jnlpol:v:2003:y:2003:i:5:id:421

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Find related papers by JEL classification:
E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
F02 - International Economics - - General - - - International Economic Order; Noneconomic International Organizations;; Economic Integration and Globalization: General
F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
O33 - Economic Development, Technological Change, and Growth - - Technological Change - - - Technological Change: Choices and Consequences; Diffusion Processes

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