FDI spillovers in the Czech Republic: takeovers vs. greenfields
AbstractThis paper analyzes the effects of foreign direct investment on the sales growth rate of domestic companies in the Czech Republic. This 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 2005, it studies both horizontal and vertical spillovers with respect to two kinds of foreign investment - takeovers and greenfields. This is the first paper applying this framework on firm level. The study allows also for the lagged nature of these spillovers. The results suggest that the sales growth rates of domestic companies mostly decrease in the presence of foreign companies, especially in upstream sectors. The impact through horizontal spillovers is mixed - positive from foreign takeovers, negative from greenfields. Positive forward spillovers are present mainly in recent years. Time sensitivity is revealed for horizontal as well as vertical spillovers.
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Bibliographic InfoPaper provided by Directorate General Economic and Monetary Affairs (DG ECFIN), European Commission in its series European Economy - Economic Papers with number 369.
Length: 28 pages
Date of creation: Mar 2009
Date of revision:
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More information through EDIRC
productivity; sales growth; spillovers; FDI; ownership; FDI Spillovers in the Czech Republic: Takeovers vs. Greenfields; Economic Papers;
Find related papers by JEL classification:
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
- F2 - International Economics - - International Factor Movements and International Business
- 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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