CEU Electronic Theses and Dissertations, 2008
| Author | Murakozy, Balazs |
|---|---|
| Title | Spillovers from FDI in Hungary |
| Summary | The main question of this thesis is whether and under which conditions do domestic firms benefit from foreign direct investment in a transition economy. For this exercise I use a large firm-level dataset of Hungarian manufacturing firms in the period between 1992 and 2003. In a brief introduction I describe the related theory presented in the international trade literature. After reviewing the theory of multinationals, I turn to models of knowledge transfer, in particular to the relationship between knowledge transfer and competition, and to its empirical relevance. In Chapter 2 I estimate horizontal and vertical spillover effects and deal with the spatial dimension, that is, whether physical distance matters. The results show that distance is important in the case of horizontal spillovers, suggesting that knowledge transfer is effective only on smaller distances. In Chapter 3 I turn to the question, whether the technology chosen by multinationals affects the productivity of domestic firms. This chapter provides evidence that spillovers from more labour intensive industries and firms are less positive. Chapter 4 asks if foreign entry leads to spillovers in terms of markups besides productivity. The regressions results show that multinational entry leads to change in the markups of domestic firms. These effects remain significant when controlling for productivity. |
| Supervisor | Laszlo Halpern |
| Department | Economics PhD |
| Full text | https://www.etd.ceu.edu/2008/cphmub01.pdf |
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