Multinational Corporations as Catalyst for Industrial Development: The Case of Poland

Carlo Altomonte () and Laura Resmini

No 368, William Davidson Institute Working Papers Series from William Davidson Institute at the University of Michigan Stephen M. Ross Business School

Abstract: In a recent model Markusen and Venables (1999) describe the conditions under which foreign direct investments (FDI) can act as a catalyst for local industrial development. We apply this framework to the case of Poland, allowing for the entry of multinationals in both intermediates and consumption goods industry. We check these assumptions against empirical evidence, exploring agglomeration patterns of multinational and domestic firms at the regional level, and constructing an econometric model able to measure the interactions between the two classes of firms. We find evidence going in the direction of both direct spill-overs and backward and forward linkages between domestic and multinational firms.

Keywords: economic geography; FDI; transition economies (search for similar items in EconPapers)
JEL-codes: F12 F15 F21 P20 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eec, nep-ifn and nep-mfd
Date: 2001-02-01
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Working Paper: Multinational Corporations as Catalyst for Industrial Development. The Case of Poland (2001)
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Persistent link: http://EconPapers.repec.org/RePEc:wdi:papers:2001-368

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