Spillovers From Foreign Direct Investment In Bulgarian Automobile Parts Industry

Miroslav Nedkov Manev ()
Additional contact information
Miroslav Nedkov Manev: Department of Industrial Business, University of Economics – Varna, Bulgaria

Business & Management Compass, 2016, issue 4, 438-454

Abstract: Presented are the results from a conducted survey f or analysis and evaluation of horizontal and vertical spillovers from foreign direct investment (FDI) in automobile parts production. Foreign-owned companies can hardly manage to protect all knowledge of the use of modern technologies and practices so part of those are being absorbed by local firms. The research goal is to determine t he impact of transnational corporations’ affiliates in sector C 29.3 “Production of automobile parts and accessories” on the enterprise s from the local economy. The most significant horizontal spillover effects result from the new practices and technologies, which can be copied through the methods of demonstration and imitation. As the most serious threat for Bulgarian firms within the sector is rated the possible labor mobility towards foreign-owned companies . The most significant vertical spillover effects to Bulgarian suppliers are realized through the degree of cooperation support, staff trainings, economies of scale and the set requirements for joined efforts. Due to the lack of market relations with Bulgarian clients and distributors “forward” vertical spillovers could not be identified.

Keywords: foreign direct investment; automobile industry; horizontal and vertical spillovers (search for similar items in EconPapers)
JEL-codes: F21 F23 (search for similar items in EconPapers)
Date: 2016
References: Add references at CitEc
Citations:

Downloads: (external link)
http://journal.ue-varna.bg/uploads/20170209015040_1406901852589c73b01d042.pdf

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:vrn:journl:y:2016:i:4:p:438-454

Access Statistics for this article

Business & Management Compass is currently edited by Julian Vasilev

More articles in Business & Management Compass from University of Economics Varna Contact information at EDIRC.
Bibliographic data for series maintained by Yana Doneva ().