Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/108106 
Year of Publication: 
2006
Series/Report no.: 
IEHAS Discussion Papers No. MT-DP - 2006/16
Publisher: 
Hungarian Academy of Sciences, Institute of Economics, Budapest
Abstract: 
Firms cluster their economic activities to exploit technological and informational spillovers from other firms. Spillovers through the entry of multinational firms can be particularly beneficial to domestic firms because of their technological superiority. Yet, the importance of foreign firm's spillovers might depend on two key features of domestic firms: their productivity level and its export status. In line with theories and empirical evidence on the absorptive capacity of firms, we argue on the basis of an empirical analysis of Hungarian firms that larger and more productive firms are more able to reap spillovers from multinationals firms than smaller firms. The export status, in contrast, is of minor importance.
Subjects: 
FDI
multinationals
productivity
spillover
regions
JEL: 
F23
F14
D21
R12
R30
ISBN: 
978-963-200-100-5
Document Type: 
Working Paper

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