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The Role of Foreign Direct Investment in the Privatisation and Restructuring of the Czech Motor Industry

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  • Petr Pavlinek

Abstract

Foreign direct investment (FDI) has been considered one of the crucial factors of a successful economic transformation in Central and Eastern Europe. This article investigates the role of FDI in the privatisation and restructuring of the Czech motor industry in the 1990s. In particular, it examines how governmental policies towards FDI affected FDI inflows, the immediate effects of FDI at the enterprise level, and the contested nature of this change. Advantages of foreign ownership for Czech enterprises, such as access to investment capital, access to sale and distribution networks of parent companies and technology transfer are discussed, as well as examples of failures of FDI to result in a successful enterprise restructuring. The information presented is based upon in-depth interviews with top managers of twenty component suppliers, governmental officials and vehicle makers in the Czech Republic as well as on the secondary data.

Suggested Citation

  • Petr Pavlinek, 2002. "The Role of Foreign Direct Investment in the Privatisation and Restructuring of the Czech Motor Industry," Post-Communist Economies, Taylor & Francis Journals, vol. 14(3), pages 359-379.
    • Handle: RePEc:taf:pocoec:v:14:y:2002:i:3:p:359-379
    DOI: 10.1080/1463137022000013421
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    References listed on IDEAS

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    1. Brian J. Aitken & Ann E. Harrison, 2022. "Do Domestic Firms Benefit from Direct Foreign Investment? Evidence from Venezuela," World Scientific Book Chapters, in: Globalization, Firms, and Workers, chapter 6, pages 139-152, World Scientific Publishing Co. Pte. Ltd..
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    Cited by:

    1. Mirja Meyborg, 2011. "The Impact of FDI on Innovation and Networking Activity in Central and Eastern Europe - A Patent Analysis," ERSA conference papers ersa10p1362, European Regional Science Association.
    2. Eric Rugraff, 2010. "Foreign Direct Investment (FDI) and Supplier-Oriented Upgrading in the Czech Motor Vehicle Industry," Regional Studies, Taylor & Francis Journals, vol. 44(5), pages 627-638.
    3. Vasileios A. Vlachos & Dimitris Kalimeris, 2010. "International business spillovers in emerging markets: the Visegrad group," International Journal of Economic Policy in Emerging Economies, Inderscience Enterprises Ltd, vol. 3(4), pages 330-345.

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