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Foreign Ownership and Productivity in Polish Industry: The Case of Polish Manufacturing, 1993-2002


  • Konrad Pawlik


This paper studies the significance of foreign direct investment and its spillover effects in a transition country such as Poland, analyzing a unique cross-industry data set on foreign, domestic private, and domestic public companies. Aspects of foreign presence as a share of the whole industry are measured according to four criteria: foreign equity, sales, investment, and labor. The results show that the level of productivity of domestic private companies has increased steadily since 1994. A high share of foreign sales and foreign equity in the industry has a negative effect on the productivity of private companies, thus implying a crowding-out effect. No evidence has been found for association between productivity in domestic companies and foreign control over multinational enterprise affiliates, which may indicate tacit knowledge spillovers. Control variables, such as one year-lagged labor compensation and scale in domestic private and public companies, are positively associated with their productivities.

Suggested Citation

  • Konrad Pawlik, 2006. "Foreign Ownership and Productivity in Polish Industry: The Case of Polish Manufacturing, 1993-2002," Eastern European Economics, Taylor & Francis Journals, vol. 44(5), pages 38-71, October.
  • Handle: RePEc:mes:eaeuec:v:44:y:2006:i:5:p:38-71

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    References listed on IDEAS

    1. Bob Beachill & Geoff Pugh, 1998. "Monetary Cooperation in Europe and the Problem of Differential Productivity Growth: an argument for a 'two-speed' Europe," International Review of Applied Economics, Taylor & Francis Journals, vol. 12(3), pages 445-457.
    2. Boone, Laurence & Maurel, Mathilde, 1998. "Economic Convergence of the CEECs with the EU," CEPR Discussion Papers 2018, C.E.P.R. Discussion Papers.
    3. Maurice Obstfeld & Kenneth S. Rogoff, 1996. "Foundations of International Macroeconomics," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262150476, July.
    4. László Halpern & Charles Wyplosz, 1997. "Equilibrium Exchange Rates in Transition Economies," IMF Staff Papers, Palgrave Macmillan, vol. 44(4), pages 430-461, December.
    5. Kornélia Krajnyák & Jeromin Zettelmeyer, 1998. "Competitiveness in Transition Economies: What Scope for Real Appreciation?," IMF Staff Papers, Palgrave Macmillan, vol. 45(2), pages 309-362, June.
    6. De Grauwe, Paul, 1996. "Monetary union and convergence economics," European Economic Review, Elsevier, vol. 40(3-5), pages 1091-1101, April.
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    Cited by:

    1. Iwasaki, Ichiro & Tokunaga, Masahiro, 2013. "Spillover versus Ownership: A Meta-Analysis of Transition Literature," RRC Working Paper Series 42, Russian Research Center, Institute of Economic Research, Hitotsubashi University.
    2. Ichiro Iwasaki & Satoshi Mizobata, 2017. "Post-Privatization Ownership and Firm Performance: A Large Meta-Analysis of the Transition Literature," KIER Working Papers 966, Kyoto University, Institute of Economic Research.
    3. Iwasaki, Ichiro & Tokunaga, Masahiro, 2016. "Technology transfer and spillovers from FDI in transition economies: A meta-analysis," Journal of Comparative Economics, Elsevier, vol. 44(4), pages 1086-1114.
    4. Elisa Giuliani & Chiara Macchi, 2013. "Multinational Corporations’ Economic And Human Rights Impacts On Developing Countries: A Review And Research Agenda," Discussion Papers 2013/158, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.

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