Foreign Direct Investment and Export Performance: Empirical Evidence
We estimate the effects of foreign direct investment (FDI) inflows on exports in 12 Central and Eastern European (CEE) economies for the period between 1996 and 2004. We separate the effects of FDI into supply capacity-increasing effects and FDI-specific effects. The supply capacity-increasing effects arise when FDI inflows increase the host country's production capacity, which, in turn, increase export supply potential. The FDI-specific effects arise because the multinational company may have superior knowledge and technology, better information about export markets, or better contact to the supply chain of the parent firm than do local firms. Our empirical results indicate that, for all countries in our sample, FDI has increased domestic supply capacity and hence exports. However, FDI-specific effects on exports are observed only in the new member states of the European Union.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 49 (2007)
Issue (Month): 3 (September)
|Contact details of provider:|| Web page: http://www.palgrave-journals.com/|
|Order Information:|| Postal: Palgrave Macmillan Journals, Subscription Department, Houndmills, Basingstoke, Hampshire RG21 6XS, UK|
Web: http://www.palgrave-journals.com/pal/subscribe/index.html Email:
When requesting a correction, please mention this item's handle: RePEc:pal:compes:v:49:y:2007:i:3:p:430-445. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Daniel Foley)
If references are entirely missing, you can add them using this form.