Horizontal crowding-out versus vertical synergies under the MNE presence

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216208%3A11640%2F17%3A00479446" target="_blank" >RIV/00216208:11640/17:00479446 - isvavai.cz</a>

Nalezeny alternativní kódy

RIV/00216208:11230/17:10373939

Výsledek na webu

<a href="http://dx.doi.org/10.20472/EFC.2017.007.006" target="_blank" >http://dx.doi.org/10.20472/EFC.2017.007.006</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.20472/EFC.2017.007.006" target="_blank" >10.20472/EFC.2017.007.006</a>

Jazyk výsledku

angličtina

Název v původním jazyce

Horizontal crowding-out versus vertical synergies under the MNE presence

Popis výsledku v původním jazyce

In this paper we provide a comprehensive analysis of the impact of the multinational enterprises (MNEs) and foreign direct investment (FDI) on domestic firms in Europe. We build on the theoretical model of Markusen and Venables (1999) and modify it to better reflect reality and to capture international industrial linkages. For empirical part we build a unique and large database that covers 30 European countries over 2001 - 2013. Rich data are combined from the Amadeus, UN Comtrade and BACI sources. Our results do not show evidence for a pure spillover effect when other channels are controlled for. However, on a more detailed level we show that MNE's presence significantly affects domestic firms both in terms of changing market structure and productivity improvements. On other hand, change in sourcing patterns often results in that domestic firms are crowded-out. However, those domestic firms, that are able to withstand this double competition, receive additional benefits stemming from their interaction with downstream MNEs in form of productivity spillovers. We also document existence of trade (export) spillovers for both upstream and downstream levels. Despite that impact of the MNEs presence is not unambiguous the existence of positive production and trade spillovers is overwhelming.

Název v anglickém jazyce

Horizontal crowding-out versus vertical synergies under the MNE presence

Popis výsledku anglicky

In this paper we provide a comprehensive analysis of the impact of the multinational enterprises (MNEs) and foreign direct investment (FDI) on domestic firms in Europe. We build on the theoretical model of Markusen and Venables (1999) and modify it to better reflect reality and to capture international industrial linkages. For empirical part we build a unique and large database that covers 30 European countries over 2001 - 2013. Rich data are combined from the Amadeus, UN Comtrade and BACI sources. Our results do not show evidence for a pure spillover effect when other channels are controlled for. However, on a more detailed level we show that MNE's presence significantly affects domestic firms both in terms of changing market structure and productivity improvements. On other hand, change in sourcing patterns often results in that domestic firms are crowded-out. However, those domestic firms, that are able to withstand this double competition, receive additional benefits stemming from their interaction with downstream MNEs in form of productivity spillovers. We also document existence of trade (export) spillovers for both upstream and downstream levels. Despite that impact of the MNEs presence is not unambiguous the existence of positive production and trade spillovers is overwhelming.

Druh

D - Stať ve sborníku

CEP obor

—

OECD FORD obor

50206 - Finance

Projekt

<a href="/cs/project/GA15-15927S" target="_blank" >GA15-15927S: Chování podniků, jejich efektivita a finance z mezinárodní perspektivy</a><br>

Návaznosti

P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)

Rok uplatnění

2017

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název statě ve sborníku

Proceedings of the 7th Economics & Finance Conference

ISBN

978-80-87927-32-8

ISSN

2336-6044

e-ISSN

—

Počet stran výsledku

46

Strana od-do

71-116

Název nakladatele

International Institute of Social and Economic Sciences (IISES)

Místo vydání

Prague

Místo konání akce

Tel Aviv

Datum konání akce

8. 3. 2017

Typ akce podle státní příslušnosti

WRD - Celosvětová akce

Kód UT WoS článku

000426854900006