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Why are spillovers through backward linkages from multinational corporations in the Czech motor industry still limited?

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  • Eric Rugraff

Abstract

This article uses the AMADEUS firm-level database and annual reports of companies to study spillovers through backward linkages from multinational corporations onto indigenous suppliers in the Czech motor industry. We use financial and non-financial indicators of foreign-owned and indigenous suppliers to define quantitative indicators to evaluate the quantity and quality of backward linkages. We suggest that the impact of MNCs on the quantity of backward linkages is mixed: in our sample Czech-owned suppliers represent half of the companies but they contribute only little to the total turnover of the suppliers. The new position of follow-source suppliers in the motor industry value chain explains the fragile position of indigenous suppliers in small emerging economies. The presence of numerous foreign-owned affiliates belonging to global MNCs, with whom the manufacturers are engaged in relational linkages on a world scale, also explains the absence of interest of the MNCs in relational linkages with the indigenous supply base.

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  • Eric Rugraff, 2013. "Why are spillovers through backward linkages from multinational corporations in the Czech motor industry still limited?," Post-Communist Economies, Taylor & Francis Journals, vol. 25(1), pages 82-98, March.
    • Handle: RePEc:taf:pocoec:v:25:y:2013:i:1:p:82-98
    DOI: 10.1080/14631377.2013.756695
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    1. Jérôme Sgard, 2001. "Direct Foreign Investments and Productivity Growth in Hungarian Firms, 1992-1999," Working Papers 2001-19, CEPII research center.
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    1. Krasniqi, Besnik & Ahmetbasić, Jasmina & Bartlett, Will, 2019. "Barriers to cross-border trade in intermediate goods within regional value chains in the CEFTA region," LSE Research Online Documents on Economics 117484, London School of Economics and Political Science, LSE Library.
    2. Marek Loužek & Jan SkopeČek, 2015. "Structural problems of the Czech economy," Post-Communist Economies, Taylor & Francis Journals, vol. 27(2), pages 233-246, June.
    3. Krasniqi, Besnik & Ahmetbasić, Jasmina & Bartlett, Will, 2022. "Foreign direct investment and backward spillovers in the Western Balkans: the context, opportunities and barriers to the development of regional supply chains," LSE Research Online Documents on Economics 115391, London School of Economics and Political Science, LSE Library.

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