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N° 2001 - 19 |
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| December |
Direct Foreign Investments and Productivity
Growth
in Hungarian Firms, 1992-1999 |
| Jérôme Sgard |
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| The impact of FDI on total factor productivity
in Hungary during the 1990s' is assessed with a large enterprise panel. Foreign
equity is associated with higher productivity levels and has a substantial, positive
spillover effect on aggregate TFP growth. However, this benefit is significant
only when associated with export orientation, while inward-looking FDI has negative
side effects. Regionally, the north-western area, close to EU borders, benefits
much more from FDI, whether foreign-owned or locally-owned private firms are considered.
Otherwise, only the later absorb a reduced volume of externalities. Finally, State
ownership implies lower levels of productivity, but does not hinder the capacity
to respond to market incentives, including FDI induced externalities. |
Abstract |
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| Foreign Direct Investment, Productivity,
Hungary, Transition, Panel, localisation, property rights |
Keywords |
| G14, F21, L11, P31 |
JEL classification |
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