Closing the productivity gap between eastern and western Europe: The role of foreign direct investment

David A Dyker

Science and Public Policy, 2004, vol. 31, issue 4, 279-287

Abstract: Interviews conducted at leading multinationals investing in central-eastern Europe (CEE) suggest that the productivity gap between lead firms and subsidiaries within the framework of foreign direct investment is relatively small, and can be closed quite quickly. The productivity gap in relation to ancillary sectors is much bigger and more recalcitrant. However, while multinationals have been prepared to invest substantial resources in in-house training programmes and so on, with a view to facilitating productivity convergence within the firm, they have shown comparatively little commitment or vision in terms of helping to build supply networks in CEE countries capable of meeting international standards of efficiency and quality. Copyright , Beech Tree Publishing.

Date: 2004
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