Spillovers from Multinationals to Heterogeneous Domestic Firms: Evidence from Hungary

Gábor Békés, Joern Kleinert () and Farid Toubal

No 616, IEHAS Discussion Papers from Institute of Economics, Hungarian Academy of Sciences

Abstract: Firms cluster their economic activities to exploit technological and informational spillovers from other firms. Spillovers through the entry of multinational firms can be particularly beneficial to domestic firms because of their technological superiority. Yet, the importance of foreign firm's spillovers might depend on two key features of domestic firms: their productivity level and its export status. In line with theories and empirical evidence on the absorptive capacity of firms, we argue on the basis of an empirical analysis of Hungarian firms that larger and more productive firms are more able to reap spillovers from multinationals firms than smaller firms. The export status, in contrast, is of minor importance.

Keywords: FDI; multinationals; productivity; spillover; regions (search for similar items in EconPapers)
JEL-codes: F23 F14 D21 R12 R30 (search for similar items in EconPapers)
Date: 2006
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Related works:
Working Paper: Spillovers from Multinationals to Heterogeneous Domestic Firms: Evidence from Hungary (2006)
Journal Article: Spillovers from Multinationals to Heterogeneous Domestic Firms: Evidence from Hungary (2009)
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Persistent link: http://EconPapers.repec.org/RePEc:has:discpr:0616

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