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The Effects of Regional and Industry: Wide FDI Spillovers on Export of Ukrainian Firms

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  • Park, Sang-Min
  • Talavera, Oleksandr
  • Lutz, Stefan

Abstract

In this paper we investigate the effects of region and industry?wide spillovers from foreign direct investment (FDI) on the volumes of export of Ukrainian manufacturing firms, using unpublished panel data from 1996?2000. Economic theory suggests that FDI has direct and indirect effects on firm?s performance. Our analysis focuses on the indirect effects like competition and linkage effects through industrial and regional spillovers respectively. We use a simple Cournot competition model in order to test for industrial and regional spillovers. The estimation results suggest that large firms, durable?goods makers, and firms located in urban areas benefit most from FDI spillovers.

Suggested Citation

  • Park, Sang-Min & Talavera, Oleksandr & Lutz, Stefan, 2003. "The Effects of Regional and Industry: Wide FDI Spillovers on Export of Ukrainian Firms," ZEW Discussion Papers 03-54, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:1377
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    Cited by:

    1. Natasha Agarwal & Chris Milner & Alejandro Riaño, 2011. "Credit Constraints and FDI Spillovers in China," Discussion Papers 11/21, University of Nottingham, GEP.
    2. Muhammed BENLI, 2016. "FDI and export spillovers using Heckman’s two step approach: Evidence from Turkish manufacturing data," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(4(609), W), pages 315-342, Winter.
    3. Stefan Lutz & Oleksandr Talavera, 2004. "Do Ukrainian Firms Benefit from FDI?," Economic Change and Restructuring, Springer, vol. 37(2), pages 77-98, June.
    4. Alyson Ma, 2006. "Export Spillovers to Chinese Firms: Evidence from Provincial Data," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 4(2), pages 127-149.
    5. Anwar, Sajid & Nguyen, Lan Phi, 2011. "Foreign direct investment and export spillovers: Evidence from Vietnam," International Business Review, Elsevier, vol. 20(2), pages 177-193, April.
    6. Cieślik Andrzej & Gurshev Oleg, 2020. "Determinants of inward FDI in Ukraine: Does political stability matter?," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 56(3), pages 243-254, September.
    7. Stefan Lutz & Oleksandr Talavera & Sang-Min Park, 2008. "Effects of Foreign Presence in a Transition Economy: Regional and Industrywide Investments and Firm-Level Exports in Ukrainian Manufacturing," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 44(5), pages 82-98, September.
    8. Elisa Giuliani & Chiara Macchi, 2014. "Multinational corporations’ economic and human rights impacts on developing countries: a review and research agenda," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 38(2), pages 479-517.
    9. Muhammed BENLI, 2016. "FDI and export spillovers using Heckman’s two step approach: Evidence from Turkish manufacturing data," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(4(609), W), pages 315-342, Winter.
    10. Anwar, Sajid & Sun, Sizhong, 2012. "FDI and market entry/exit: Evidence from China," Journal of Asian Economics, Elsevier, vol. 23(5), pages 487-498.

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    More about this item

    Keywords

    transition economies; Ukraine; foreign direct investment; spillovers;
    All these keywords.

    JEL classification:

    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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