Spillover effects: A challenging public interest to measure

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F44555601%3A13510%2F23%3A43897964" target="_blank" >RIV/44555601:13510/23:43897964 - isvavai.cz</a>

Výsledek na webu

<a href="https://www.aimspress.com/article/doi/10.3934/NAR.2023022" target="_blank" >https://www.aimspress.com/article/doi/10.3934/NAR.2023022</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.3934/NAR.2023022" target="_blank" >10.3934/NAR.2023022</a>

Jazyk výsledku

angličtina

Název v původním jazyce

Spillover effects: A challenging public interest to measure

Popis výsledku v původním jazyce

Spillover effects represent a difficult-to-measure externality resulting from the localization of foreign capital in the host economy. Despite their character of externality, spillover effects represent a public interest. The governments of many transitional economies spend financial resources in the form of investment incentives to support economic growth and spillover effects from the inflow of foreign direct investment (FDI). However, there is still no established methodology for regularly measuring spillover effects. This article tries to fill this gap. It aims to measure the spillover effects of FDI localization in the host business environment with the possibility of identifying differences in their size and development on the level of regions within the host economy ? in the case of the Czech Republic. Based on shift-share analyses, an indicator quantifying the size of the technology gap at the regional level has been constructed. The benchmarking method illustrates the absorption capacity of the business environment in an interregional comparison reflecting the strong and weak sides of the regions in terms of absorbing the benefits of locating multinational corporations in their territories. The spillover effect was evaluated based on five criteria: gross value added (GVA), technology gap level, investment in research and development (R&amp;D), share of people with secondary and higher education and inflow of FDI. The higher the value of the constructed Spillover index achieved in the region, the higher the positive effect of FDI on economic development. The spillover effects were evaluated within the years 2002?2021 and assessed the impact of 211 FDI on the economic development of five regions of the Czech Republic. Calculations showed that the strength and magnitude of spillover effects fully reflect the weaknesses of peripheral regions. The methodology offers policymakers a tool (indicator) for improving the targeting of institutional support in relation to economic growth and the development of the business environment.

Název v anglickém jazyce

Spillover effects: A challenging public interest to measure

Popis výsledku anglicky

Spillover effects represent a difficult-to-measure externality resulting from the localization of foreign capital in the host economy. Despite their character of externality, spillover effects represent a public interest. The governments of many transitional economies spend financial resources in the form of investment incentives to support economic growth and spillover effects from the inflow of foreign direct investment (FDI). However, there is still no established methodology for regularly measuring spillover effects. This article tries to fill this gap. It aims to measure the spillover effects of FDI localization in the host business environment with the possibility of identifying differences in their size and development on the level of regions within the host economy ? in the case of the Czech Republic. Based on shift-share analyses, an indicator quantifying the size of the technology gap at the regional level has been constructed. The benchmarking method illustrates the absorption capacity of the business environment in an interregional comparison reflecting the strong and weak sides of the regions in terms of absorbing the benefits of locating multinational corporations in their territories. The spillover effect was evaluated based on five criteria: gross value added (GVA), technology gap level, investment in research and development (R&amp;D), share of people with secondary and higher education and inflow of FDI. The higher the value of the constructed Spillover index achieved in the region, the higher the positive effect of FDI on economic development. The spillover effects were evaluated within the years 2002?2021 and assessed the impact of 211 FDI on the economic development of five regions of the Czech Republic. Calculations showed that the strength and magnitude of spillover effects fully reflect the weaknesses of peripheral regions. The methodology offers policymakers a tool (indicator) for improving the targeting of institutional support in relation to economic growth and the development of the business environment.

Druh

J_imp - Článek v periodiku v databázi Web of Science

CEP obor

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OECD FORD obor

50202 - Applied Economics, Econometrics

Projekt

—

Návaznosti

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Rok uplatnění

2023

Kód důvěrnosti údajů

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

Název periodika

National Accounting Review

ISSN

2689-3010

e-ISSN

2689-3010

Svazek periodika

5

Číslo periodika v rámci svazku

4

Stát vydavatele periodika

US - Spojené státy americké

Počet stran výsledku

32

Strana od-do

373-404

Kód UT WoS článku

001148184300004

EID výsledku v databázi Scopus

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