Horizontal and Vertical FDI Spillovers: Recent Evidence from the Czech Republic
AbstractThis paper analyzes the effects of foreign direct investment on the sales growth rate of domestic companies in the Czech Republic. Using firm- level panel data from 1995 to 2003, it studies both horizontal and vertical spillovers. The study allows for the lagged nature of spillovers and pays at- tention to the potential endogeneity of FDI with respect to future industry growth. The results suggest that domestic companies are mostly su®ering in the presence of foreign companies, especially in upstream sectors. Negative horizontal and forward spillovers are present mainly in recent years. Time sensitivity is revealed for horizontal spillovers.
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Bibliographic InfoPaper provided by The Center for Economic Research and Graduate Education - Economic Institute, Prague in its series CERGE-EI Working Papers with number wp340.
Date of creation: Sep 2007
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Productivity; growth; spillovers; FDI; ownership.;
Find related papers by JEL classification:
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
- D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis
- L6 - Industrial Organization - - Industry Studies: Manufacturing
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