CEU Electronic Theses and Dissertations, 2017
| Author | Bilyi, Bohdan |
|---|---|
| Title | The Effects of Foreign Direct Investments in a Transition Economy: The Case of Ukraine |
| Summary | The question of foreign direct investments (FDI) attraction has been always among top-priorities for policy makers from all over the world. Transition economies are eager to attract FDI since they promise to have a positive influence on the performance of receiving firm; however, despite all attractiveness, FDI can also indirectly affect domestic firms without foreign capital bringing both positive and negative spillover effects. Therefore, two main questions are addressed in the thesis: (1) do firms with FDI perform better than domestic ones? (2) do domestic firms benefit from spillover effects of FDI? In this work, I investigate the dependence of Foreign Direct Investment on the performance of Ukrainian firms. Using the unique sample of 2438 Ukrainian firms, I employ fixed effects estimators identification strategy for the panel data for the 2008-2013 period. The results are robust to possible sources of endogeneity. According to my findings, only in Kirovohrad, Zaporizhzhya, Zakarpattya and Zhytomyr regions, on average, firms with FDI perform better than domestic ones. At the same time, firms receiving FDI in such regions as Chernivtsi, Dnipropetrovsk, Kyiv and Odesa, on average, show lower performance. Moreover, the results suggest that there are positive spillovers to domestic firms in Western Ukraine and Kyiv region, while the real estate sector suffers from the highest negative spillover effect. Keywords: FDI, direct effects, indirect effects, spillovers, transition economy, Ukraine. |
| Supervisor | Miklós, Koren |
| Department | Economics MA |
| Full text | https://www.etd.ceu.edu/2017/bilyi_bohdan.pdf |
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