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Foreign Direct Investment (FDI) and Supplier-Oriented Upgrading in the Czech Motor Vehicle Industry

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  • Eric Rugraff

Abstract

Rugraff E. Foreign direct investment (FDI) and supplier-oriented upgrading in the Czech motor vehicle industry, Regional Studies. The Czech Republic has succeeded in building a new comparative advantage in motor vehicle and motor component production. Yet, the Czech-owned companies only contribute weakly to the Czech upgrading. The Czech-owned companies are totally absent from first-tier suppliers and are only linked by casual technological relationships to foreign-owned multinational subsidiaries. This kind of relationship limits the vertical spillovers from foreign-owned multinational subsidiaries and is responsible for the existence of a weak link in the Czech automotive system that may foster the relocation of foreign-owned subsidiaries in foreign countries.

Suggested Citation

  • Eric Rugraff, 2010. "Foreign Direct Investment (FDI) and Supplier-Oriented Upgrading in the Czech Motor Vehicle Industry," Regional Studies, Taylor & Francis Journals, vol. 44(5), pages 627-638.
  • Handle: RePEc:taf:regstd:v:44:y:2010:i:5:p:627-638 DOI: 10.1080/00343400903095253
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    References listed on IDEAS

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    1. Yannick Lung, 2004. "The changing geography of the European automobile system," International Journal of Automotive Technology and Management, Inderscience Enterprises Ltd, pages 137-165.
    2. Markusen, James R. & Venables, Anthony J., 1999. "Foreign direct investment as a catalyst for industrial development," European Economic Review, Elsevier, vol. 43(2), pages 335-356, February.
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    4. Holger Görg & Eric Strobl, 2003. ""Footloose" Multinationals?," Manchester School, University of Manchester, pages 1-19.
    5. Beata Smarzynska Javorcik, 2004. "Does Foreign Direct Investment Increase the Productivity of Domestic Firms? In Search of Spillovers Through Backward Linkages," American Economic Review, American Economic Association, pages 605-627.
    6. Rodriguez-Clare, Andres, 1996. "Multinationals, Linkages, and Economic Development," American Economic Review, American Economic Association, pages 852-873.
    7. Stephen S. Golub, 2003. "Measures Of Restrictions on Inward Foreign Direct Investment for OECD Countries," OECD Economics Department Working Papers 357, OECD Publishing.
    8. Gereffi, Gary, 1999. "International trade and industrial upgrading in the apparel commodity chain," Journal of International Economics, Elsevier, pages 37-70.
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    Cited by:

    1. repec:krk:eberjl:v:5:y:2017:i:3:p:95-117 is not listed on IDEAS
    2. Frigant, Vincent & Miollan, Stéphane, 2014. "The geographical restructuring of the European automobile industry in the 2000s," MPRA Paper 53509, University Library of Munich, Germany.
    3. Vincent Frigant & Stéphane Miollan, 2014. "La restructuration de la géographie de l'industrie automobile en Europe dans les années 2000," Working Papers hal-00935325, HAL.
    4. Petr Pavlínek & Jan Ženka, 2011. "Upgrading in the automotive industry: firm-level evidence from Central Europe," Journal of Economic Geography, Oxford University Press, vol. 11(3), pages 559-586, May.

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