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Spillovers from Multinationals to Heterogeneous Domestic Firms: Evidence from Hungary

  • Gábor Békés

    (Institute of Economics-HAS - Institute of Economics-HAS, Hungary.)

  • Jörn Kleinert

    (University of Graz - Université de Graz)

  • Farid Toubal


    (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics)

Technological and informational spillovers from multinational firms can be particularly beneficial to domestic firms especially in less developed economies. The technological superiority and management experience of foreign multinational firms yield various opportunities for learning. Yet, the importance of foreign firm's spillovers might vary with respect to the different intensities of the linkage between the multinational and the domestic firm, the differences in firms' absorptive capacity and their ability to face competition. We show using firm-level Hungarian data that positive spillovers from multinationals depend on the level of productivity and the exporting status of the domestic firm. Larger and more productive firms are more able to reap spillovers from multinationals than smaller and less productive firms. The export status, in contrast, is of minor importance.

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Paper provided by HAL in its series Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) with number halshs-00641328.

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Date of creation: 01 Oct 2009
Date of revision:
Publication status: Published in World Economy, Wiley, 2009, 32 (10), pp.1408-1433. <10.1111/j.1467-9701.2009.01179.x>
Handle: RePEc:hal:cesptp:halshs-00641328
DOI: 10.1111/j.1467-9701.2009.01179.x
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  1. Balázs, Muraközy & Halpern, László, 2005. "Does Distance Matter in Spillover?," CEPR Discussion Papers 4857, C.E.P.R. Discussion Papers.
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  14. Philippe Aghion & Nick Bloom & Richard Blundell & Rachel Griffith & Peter Howitt, 2005. "Competition and Innovation: an Inverted-U Relationship," The Quarterly Journal of Economics, Oxford University Press, vol. 120(2), pages 701-728.
  15. Nigel Driffield & Max Munday & Annette Roberts, 2002. "Foreign Direct Investment, Transactions Linkages, and the Performance of the Domestic Sector," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 9(3), pages 335-351.
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