Foreign Capital and Domestic Productivity in the Czech Republic

Mojmir Hampl () and Tomas Havranek
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Mojmir Hampl: Czech National Bank, Na prikope 28, 115 03 Prague 1, Czech Republic

No 2018/12, Working Papers IES from Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies

Abstract: In this paper we take stock of the evidence concerning the effect of foreign direct investment (FDI) on the productivity of locally owned firms in the Czech Republic. To this end, we collect 332 estimates previously reported in journal articles, working papers, and PhD theses. We find that the mean reported externality arising for domestic firms due to the presence of foreign firms (the “FDI spillover”) is zero. There is no evidence of publication bias, i.e., no sign of selective reporting of results that are statistically significant and show an intuitive sign. Nevertheless, we find that the overall spillover effect is positive and large when more weight is placed on estimates that conform to best-practice methodology. Our results suggest that, as of 2018, a 10-percentage-point increase in foreign presence is likely to lift the productivity of domestic firms by 11%. The effect is even larger for joint ventures, reaching 19%.

Keywords: Foreign direct investment; productivity; spillovers; meta-analysis (search for similar items in EconPapers)
JEL-codes: C83 F23 (search for similar items in EconPapers)
Pages: 18 pages
Date: 2018-05, Revised 2018-05
New Economics Papers: this item is included in nep-eff, nep-int and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Chapter: Foreign capital and domestic productivity in the Czech Republic (2018)
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