Foreign Direct Investment and Productivity Spillovers: Updated Evidence from Central and Eastern Europe

Adam Gersl, Ieva Rubene and Tina Zumer

Working Papers from Czech National Bank, Research and Statistics Department

Abstract: The paper discusses the inflows of foreign direct investment into the CEE countries and focuses on analysis of productivity spillovers. An overview of the relevance of foreign firms in the CEE economies is presented. Using firm-level data on manufacturing industries for the period 2000–-2005, the total factor productivity of domestic firms is estimated using the Petrin and Levinsohn (2003) method and subsequently related within a panel data model to foreign presence in the same industry and in industries linked via the production chain. The presence of productivity spillovers is tested for across several sub-samples to detect possible conditionalities.

Keywords: Foreign direct investment; productivity; spillovers. (search for similar items in EconPapers)
JEL-codes: D24 F21 L60 (search for similar items in EconPapers)
Date: 2007-12
New Economics Papers: this item is included in nep-eff and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (24)

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Persistent link: https://EconPapers.repec.org/RePEc:cnb:wpaper:2007/8

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