Foreign direct investment in the czech manufacturing sector

Vladimír Benáček and Alena Zemplinerova

Prague Economic Papers, 1997, vol. 1997, issue 2

Abstract: In the period of 1991-96 there were large volumes of foreign direct investment directed to various Czech manufacturing industries and services. Our empirical analysis has shown that enterprises of the manufacturing sector, into which the foreign capital was invested, were generally physical capital intensive and labor saving. At the same time, both capital and labor efficiencies in firms with FDI have been significantly above the domestic average. Another salient feature of the FDI enterprises is that they are very export intensive and, on the input side, they have a higher proportion of material inputs and thus relatively lower proportion of value added.

Date: 1997
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DOI: 10.18267/j.pep.124

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