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

  • Peter Walkenhorst

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.

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Article provided by Taylor & Francis Journals in its journal Post-Communist Economies.

Volume (Year): 12 (2000)
Issue (Month): 1 ()
Pages: 61-75

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Handle: RePEc:taf:pocoec:v:12:y:2000:i:1:p:61-75
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  1. 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.
  2. John Dunning, 1998. "Globalization and the new geography of foreign direct investment," Oxford Development Studies, Taylor & Francis Journals, vol. 26(1), pages 47-69.
  3. Kokko, Ari, 1994. "Technology, market characteristics, and spillovers," Journal of Development Economics, Elsevier, vol. 43(2), pages 279-293, April.
  4. 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.
  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. Blomstrom, Magnus & Kokko, Ari, 1997. "How foreign investment affects host countries," Policy Research Working Paper Series 1745, The World Bank.
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