Lutz, Stefan H. Talavera, Oleksandr Park, Sang-Min
Year of Publication:
ZEI Working Paper No. B 18-2003
In this paper we investigate the effects of region and industrywide spillovers from foreign direct investment (FDI) on the volumes of export of Ukrainian manufacturing firms, using (name of the data set) panel data from 1996-2000. Economic theory suggests that FDI has direct and indirect effects on firm’s performance. Our analysis focuses on the indirect effects like competition and linkage effects through industrial and regional spillovers respectively. We use a simple Cournot competition model in order to test for industrial and regional spillovers. The estimation results suggest that large firms, durablegoods makers, and firms located in urban areas benefit most from FDI spillovers.
transition economies Ukraine foreign direct investment spillovers