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The concentric-circle model of FDI spilklover effects estimation using Hungarian panel data

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  • Miklos Szanyi

    (Institute of World Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences)

  • Ichiro Iwasaki
  • Peter Csizmadia
  • Miklos Illessy
  • Csaba Mako

Abstract

A new empirical model is presented in this paper with respect to the productivity spillover effects of foreign direct investment (FDI) by focusing on the concentric-circle structure of industrial organizations arising from sectoral differences among firms. In this model, the market presence of horizontal FDI in a host country is expressed using multiple variables with a nested structure corresponding to the aggregated level of industrial classification in order to identify its spillover effects on the productivity of domestic firms according to the industrial sector with different depth. We estimated the model using large-scale firm-level data from Hungary and confirmed horizontal FDI spillover effects simultaneously taking place in sectors with different depth that cannot be captured with the conventional model having a single horizontal variable

Suggested Citation

  • Miklos Szanyi & Ichiro Iwasaki & Peter Csizmadia & Miklos Illessy & Csaba Mako, 2009. "The concentric-circle model of FDI spilklover effects estimation using Hungarian panel data," IWE Working Papers 191, Institute for World Economics - Centre for Economic and Regional Studies.
    • Handle: RePEc:iwe:workpr:191
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    Cited by:

    1. Miklos Szanyi & Ichiro Iwasaki & Balazs Lengyel, 2011. "Industrial concentration, regional employment and productivity growth - evidence from the late transition period of Hungary," IWE Working Papers 195, Institute for World Economics - Centre for Economic and Regional Studies.

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    More about this item

    Keywords

    foreign direct investment; spillover effects; concentric-circle model; Hungary;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • L80 - Industrial Organization - - Industry Studies: Services - - - General
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
    • P23 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Factor and Product Markets; Industry Studies; Population

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