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Productivity change and externalities: empirical evidence from Hungary

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  • Victoria Kravtsova

Abstract

This paper contributes to the analysis of the impact of externalities on the host country's total factor productivity by taking into account different dimensions of spillover effects. Namely, engagement in exporting and foreign ownership is generally perceived as being beneficial to individual firms and the economy as a whole. The approach used in the current research accounts for different internal as well as external factors that individual firms face and evaluates the effect on changes in productivity, technology as well as the efficiency of domestic firms. The empirical analysis focuses on Hungary. While the country leads the group of post-socialist countries in the amount of attracted foreign direct investments (FDI) the effect of this policy on the economy remains unclear. The research finds that different externalities play a different role in productivity, technological and efficiency change in different types of firms and sectors of the economy.

Suggested Citation

  • Victoria Kravtsova, 2014. "Productivity change and externalities: empirical evidence from Hungary," International Review of Applied Economics, Taylor & Francis Journals, vol. 28(1), pages 102-125, January.
    • Handle: RePEc:taf:irapec:v:28:y:2014:i:1:p:102-125
    DOI: 10.1080/02692171.2013.828682
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    Cited by:

    1. Iwasaki, Ichiro & Tokunaga, Masahiro, 2016. "Technology transfer and spillovers from FDI in transition economies: A meta-analysis," Journal of Comparative Economics, Elsevier, vol. 44(4), pages 1086-1114.
    2. Jacek Klich, 2014. "Foreign Direct Investment in the Visegrad Countries after 2004: Have the Visegrad Countries’ Membership in the European Union Changed Something?," Entrepreneurial Business and Economics Review, Centre for Strategic and International Entrepreneurship at the Cracow University of Economics., vol. 2(3), pages 19-31.

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