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Productivity, Export Performance, and Financing of the Czech Corporate Sector: The Effects of Foreign Direct Investment

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Abstract

The article looks in both theoretical and empirical terms at whether large foreign presence has affected domestic firms. Foreign firms might both intentionally and unintentionally influence the productivity, financing, and export performance of local firms within the same industry or across industries along the production chain via supplier and client linkages. Economic theory does not suggest an unambiguous answer to the question of whether the influence is positive or negative. To answer this question, both firm-level and industry-level data on performance, financing, and exports and interactions of firms within the production chain in the Czech Republic are analyzed.

Suggested Citation

  • Adam GERŠL, 2008. "Productivity, Export Performance, and Financing of the Czech Corporate Sector: The Effects of Foreign Direct Investment," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 58(05-06), pages 232-247, August.
  • Handle: RePEc:fau:fauart:v:58:y:2008:i:5-6:p:232-247
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    File URL: http://journal.fsv.cuni.cz/storage/1130_1130_str_231_247--gersl.pdf
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    References listed on IDEAS

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    3. B. Merlevede & K. Schoors, 2006. "FDI and the Consequences Towards more complete capture of spillover effects," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 06/372, Ghent University, Faculty of Economics and Business Administration.
    4. Fosfuri, Andrea & Motta, Massimo & Ronde, Thomas, 2001. "Foreign direct investment and spillovers through workers' mobility," Journal of International Economics, Elsevier, vol. 53(1), pages 205-222, February.
    5. Roman Horváth, 2005. "Financial Accelerator Effects in the Balance Sheets of Czech Firms," Working Papers IES 96, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised 2005.
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    7. Joze P. Damijan & Mark Knell & Boris Majcen & Matija Rojec, 2003. "Technology Transfer through FDI in Top-10 Transition Countries: How Important are Direct Effects, Horizontal and Vertical Spillovers?," William Davidson Institute Working Papers Series 549, William Davidson Institute at the University of Michigan.
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    Cited by:

    1. Vasileios A. Vlachos & Dimitris Kalimeris, 2010. "International business spillovers in emerging markets: the Visegrad group," International Journal of Economic Policy in Emerging Economies, Inderscience Enterprises Ltd, vol. 3(4), pages 330-345.

    More about this item

    Keywords

    foreign direct investment; spillovers; productivity; corporate finance; export performance;

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General

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