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Author:Nicolini, M.
Resmini, L.
Title:FDI spillovers in new EU member states
Journal:Economics of transition
2010 : VOL. 18:3, p. 487-511
Index terms:foreign investment
direct investment
transition economies
Eastern Europe
European Union
Freeterms:FDI
Language:eng
Abstract:Based on firm-level data from Bulgaria, Poland and Romania, the impact of foreign firms on domestic firms' productivity is explored. Particularly, there are the following research questions: 1. Are there any spillover effects (henceforth as: s-effs.) of foreign direct investments (FDI), and if so, are they positive or negative? 2. Are s-effs. more likely to occur within or across sectors? 3. Are the existence, the direction and the magnitude of spillovers (as: sps.) affected by sector and firm-specific characteristics? FDI sps. are shown to exist both within and across sectors. The former arise when foreign firms (as: f-firms) operate in labour-intensive sectors, whereas the latter occur when f-firms operate in high-tech sectors. Furthermore, it is found among others that domestic firm size conditions the exploitation of FDI sps. even after controlling for absorptive capacity.
SCIMA record nr: 269647
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