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Foreign Direct Investment, Technological Spillovers and the Agricultural Transition in Central Europe

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  • Peter Walkenhorst

Abstract

The article reports on spillovers from foreign direct investment to related industries in Central European transition countries. In particular, the impact of foreign investment in the sugarbeet-processing industry on the wider agro-food sector is investigated. The empirical findings indicate that foreign direct investment brings not only much needed capital to the region but also managerial and technological skills which are in similarly short supply. Technical support in the form of training programmes, pilot demonstration projects and innovative contract designs is found to help foreign affiliates secure sufficient high quality raw material supplies, while inducing sector-wide improvements in agricultural productivity and agri-business practices.

Suggested Citation

  • Peter Walkenhorst, 2000. "Foreign Direct Investment, Technological Spillovers and the Agricultural Transition in Central Europe," Post-Communist Economies, Taylor & Francis Journals, vol. 12(1), pages 61-75.
  • Handle: RePEc:taf:pocoec:v:12:y:2000:i:1:p:61-75
    DOI: 10.1080/14631370050002675
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    References listed on IDEAS

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    1. Kokko, Ari, 1994. "Technology, market characteristics, and spillovers," Journal of Development Economics, Elsevier, vol. 43(2), pages 279-293, April.
    2. Gershenberg, Irving, 1987. "The training and spread of managerial know-how, a comparative analysis of multinational and other firms in Kenya," World Development, Elsevier, vol. 15(7), pages 931-939, July.
    3. Haddad, Mona & Harrison, Ann, 1993. "Are there positive spillovers from direct foreign investment? : Evidence from panel data for Morocco," Journal of Development Economics, Elsevier, vol. 42(1), pages 51-74, October.
    4. Blomstrom, Magnus & Kokko, Ari, 1997. "How foreign investment affects host countries," Policy Research Working Paper Series 1745, The World Bank.
    5. Blomstrom, Magnus & Persson, Hakan, 1983. "Foreign investment and spillover efficiency in an underdeveloped economy: Evidence from the Mexican manufacturing industry," World Development, Elsevier, vol. 11(6), pages 493-501, June.
    6. John Dunning, 1998. "Globalization and the new geography of foreign direct investment," Oxford Development Studies, Taylor & Francis Journals, vol. 26(1), pages 47-69.
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    Cited by:

    1. Gow, Hamish & Shanoyan, Aleksan & Cocks, Jack, 2009. "Farmers’ Choices Among Alternative Dairy Marketing Channels in Armenia: Can Appropriately Designed ODA Substitute for FDI?," Journal of Rural Cooperation, Hebrew University, Center for Agricultural Economic Research, vol. 37(1).
    2. Gow, Hamish & Shanoyan, Aleksan, 2010. "Is the facilitation of sustainable market access achievable? Design and implementationlessons from Armenia," IAMO Forum 2010: Institutions in Transition – Challenges for New Modes of Governance 52704, Leibniz Institute of Agricultural Development in Central and Eastern Europe (IAMO).
    3. Jin, Shaosheng & Guo, Haiyue & Delgado, Michael S. & Wang, H. Holly, 2017. "Benefit or damage? The productivity effects of FDI in the Chinese food industry," Food Policy, Elsevier, vol. 68(C), pages 1-9.
    4. Erik Mathijs & Liesbet Vranken, 2001. "Human Capital, Gender and Organisation in Transition Agriculture: Measuring and Explaining the Technical Efficiency of Bulgarian and Hungarian Farms," Post-Communist Economies, Taylor & Francis Journals, vol. 13(2), pages 171-187.
    5. Peter Walkenhorst, 2001. "The Geography of Foreign Direct Investment in Poland's Food Industry," Journal of Agricultural Economics, Wiley Blackwell, vol. 52(3), pages 71-86.
    6. Cocks, Jack & Gow, Hamish R. & Westgren, Randall E., 2005. "Public Facilitation of Small Farmer Access to International Food Marketing Channels: An Empirical Analysis of the USDA Market Assistance Program in Armenia," 2005 Annual meeting, July 24-27, Providence, RI 19295, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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