Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/83394 
Authors: 
Year of Publication: 
2008
Series/Report no.: 
IES Working Paper No. 3/2008
Publisher: 
Charles University in Prague, Institute of Economic Studies (IES), Prague
Abstract: 
Foreign direct investment has been one of the main drivers of economic developments over the past few years in Central and Eastern Europe (CEE). Within the ongoing globalization and international division of labor, a large number of foreign companies have established production units in CEE countries to benefit from low labor costs and other advantages. This study looks both in theoretical and empirical terms at whether large foreign presence has also affected domestic firms. Foreign firms might both intentionally and unintentionally influence the productivity, financing and export performance of local firms within the same industry or across industries along the production chain via sub-supplier and client linkages. Economic theory does not suggest unambiguous answer to a question whether the influence is positive or negative. For answering the question, both firm-level and industry-level data on performance, financing and exports and interactions of firms within production chain in the Czech Republic are analyzed.
Subjects: 
foreign direct investment
productivity
corporate finance
export performance
JEL: 
F21
D24
L60
G32
F40
Document Type: 
Working Paper

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