Multinational Corporations as a Catalyst for Local Industrial Development. The Case of Poland

Carlo Altomonte () and Laura Resmini

SCIENZE REGIONALI, 2002, vol. 2002/2, issue 2

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 intermediate and consumption goods industries. We check these hypotheses 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.Consistent with the theoretical predictions, we find robust evidence for the idea that multinationals may promote local industrial development through the generation of backward and forward linkages.

JEL-codes: F12 F15 F21 P20 (search for similar items in EconPapers)
Date: 2002
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Citations: View citations in EconPapers (10)

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