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Foreign Direct Investment (FDI) and Supplier-Oriented Upgrading in the Czech Motor Vehicle Industry

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  • Eric Rugraff

Abstract

Rugraff E. Foreign direct investment (FDI) and supplier-oriented upgrading in the Czech motor vehicle industry, Regional Studies. The Czech Republic has succeeded in building a new comparative advantage in motor vehicle and motor component production. Yet, the Czech-owned companies only contribute weakly to the Czech upgrading. The Czech-owned companies are totally absent from first-tier suppliers and are only linked by casual technological relationships to foreign-owned multinational subsidiaries. This kind of relationship limits the vertical spillovers from foreign-owned multinational subsidiaries and is responsible for the existence of a weak link in the Czech automotive system that may foster the relocation of foreign-owned subsidiaries in foreign countries.

Suggested Citation

  • 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.
  • Handle: RePEc:taf:regstd:v:44:y:2010:i:5:p:627-638
    DOI: 10.1080/00343400903095253
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    Cited by:

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    2. Vincent Frigant & Stéphane Miollan, 2014. "La restructuration de la géographie de l'industrie automobile en Europe dans les années 2000," Working Papers hal-00935325, HAL.
    3. Frigant, Vincent & Miollan, Stéphane, 2014. "The geographical restructuring of the European automobile industry in the 2000s," MPRA Paper 53509, University Library of Munich, Germany.
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    5. Petr Pavlínek & Jan Ženka, 2011. "Upgrading in the automotive industry: firm-level evidence from Central Europe," Journal of Economic Geography, Oxford University Press, vol. 11(3), pages 559-586, May.
    6. Marta Gancarczyk & Jacek Gancarczyk & Joanna Bohatkiewicz, 2017. "SME Roles in Modular Value Chains: Perspectives for Growth and Innovativeness," Entrepreneurial Business and Economics Review, Centre for Strategic and International Entrepreneurship at the Cracow University of Economics., vol. 5(3), pages 95-117.
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