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Direct and indirect effects of FDI in emerging European markets : a survey and meta-analysis

Author

Listed:
  • Jan Hanousek

    (CERGE-EI - Center for Economic Research and Graduate Education - Economics Institute)

  • Evžen Kočenda

    (CERGE-EI - Center for Economic Research and Graduate Education - Economics Institute)

  • Mathilde Maurel

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

Abstract

We review a large body of literature dealing with the effects of Foreign Direct Investment (FDI) on economies during their transformation from a command economic system toward a market system. We report the results of a meta-analysis based on the literature on externalities from FDI. The studies on emerging European markets covered in our survey report direct and indirect FDI effects weakening over time, similarly as in other FDI destination countries. This is imputable to a publication bias that is detected and to the fact that more sophisticated methods and more controls can be used once a sufficient time span is available. Panel studies are likely to find relatively lower spillover effects. The choice of the research design (definition of firm performance and foreign firm presence) matters. More specific to the sampled studies is the role played by forward and backward linkages, which dominate other channels in driving FDI externalities.

Suggested Citation

  • Jan Hanousek & Evžen Kočenda & Mathilde Maurel, 2010. "Direct and indirect effects of FDI in emerging European markets : a survey and meta-analysis," Post-Print halshs-00469544, HAL.
  • Handle: RePEc:hal:journl:halshs-00469544
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    More about this item

    Keywords

    meta-analysis; FDI; productivity spillovers; economic transformation; emerging markets; meta-analysis.;
    All these keywords.

    JEL classification:

    • C42 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Survey Methods
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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