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Foreign direct investment and technology change

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Author Info

  • 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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Bibliographic 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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Related research

Keywords: foreign direct investment; transition economies; technology gap; manufacturing industry; technology transfer;

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Cited by:
  1. Martin Srholec, 2014. "Cooperation and Innovative Performance of Firms: Panel Data Evidence from the Czech Republic, Norway and the UK," Journal of the Knowledge Economy, Springer, vol. 5(1), pages 133-155, March.
  2. Elisa Galeotti & Eva Ryšavá, 2008. "The endogeneity problem and fdi in transition: evidence from the privatized glass sector," Prague Economic Papers, University of Economics, Prague, vol. 2008(4), pages 319-339.

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