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Impact of foreign direct investment on the restructuring and growth in manufacturing

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  • Alena Zemplinerová

Abstract

Nation-wide firm-level data are used for the time series and cross-section analysis of foreign direct investment in manufacturing on 2digit and 3digit industries. Dynamics of foreign investment enterprises (FIEs) are computed for the period 1993-1996. The performance of FIEs is compared with the domestic enterprises. Related policy issues ere discussed.Although the share of foreign investment enterprises in the total manufacturing output doubled during the period 1993-96, with 23 % remains relatively low in comparison with Hungary where the respective share in output reached 67 % by 1996. Foreign penetration via equity ownership is low in the industries with excess capacities end need for extensive restructuring such as steel industry or large machinery, chemicals, coke end refinery. Allocation pattern of FIEs differs from domestic enterprises. Foreign investment is more specialised and concentrated than domestic enterprises.

Suggested Citation

  • Alena Zemplinerová, 1998. "Impact of foreign direct investment on the restructuring and growth in manufacturing," Prague Economic Papers, Prague University of Economics and Business, vol. 1998(4).
  • Handle: RePEc:prg:jnlpep:v:1998:y:1998:i:4:id:159
    DOI: 10.18267/j.pep.159
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    Cited by:

    1. Yusaf H. Akbar & Sonia Ferencikova, 2007. "Industrial Clustering and Global Value Chains in Central and Eastern Europe: Role of Multinational Enterprises in Industrial Upgrading," Prague Economic Papers, Prague University of Economics and Business, vol. 2007(3), pages 237-251.
    2. Andrei Medvedev & Alena Zemplinerová, 2005. "Does Competition Improve Performance? Evidence from the Czech Manufacturing Industries," Prague Economic Papers, Prague University of Economics and Business, vol. 2005(4), pages 317-330.

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