FDI and productivity convergence in central and eastern Europe: an industry-level investigation

Marcin Kolasa and Martin Bijsterbosch

No 992, Working Paper Series from European Central Bank

Abstract: This paper presents empirical evidence of the effect of FDI inflows on productivity convergence in central and eastern Europe, using industry-level data. Four conclusions stand out. First, there is a strong convergence effect in productivity, both at the country and at the industry level. Second, FDI inflow plays an important role in accounting for productivity growth. Third, the impact of FDI on productivity critically depends on the absorptive capacity of recipient countries and industries. Fourth, there is important heterogeneity across countries, industries and time with respect to some of the main findings. JEL Classification: C23, F21, O33

Keywords: absorptive capacity; FDI; Productivity convergence (search for similar items in EconPapers)
Date: 2009-01
Note: 339019
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Citations: View citations in EconPapers (25)

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Persistent link: https://EconPapers.repec.org/RePEc:ecb:ecbwps:2009992

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