Effects of Foreign Presence in a Transition Economy: Regional and Industry-Wide Investments and Firm-Level Exports in Ukrainian Manufacturing

Stefan Lutz, Oleksandr Talavera () and Sang-Min Park

No 594, Discussion Papers of DIW Berlin from DIW Berlin, German Institute for Economic Research

Abstract: We investigate the effects of regional and industry-wide foreign presence and foreign direct investment (FDI) on export volumes of Ukrainian manufacturing firms using unpublished panel data from 1996-2000. Foreign presence through FDI may have negative competition effects on domestic firms' performance while, at the same time, domestic firms' productivity may be increased by technology transfer or through training and demonstration effects. From a Cournot competition model including negative competition and positive technology-spillover effects, we derive the hypotheses that foreign presence and foreign investment might positively affect domestic firms' output and exports. Our estimation results support these hypotheses and suggest in particular that large firms and durable-goods producers benefit most from foreign presence and investments.

Keywords: transition; foreign direct investment; spillovers; firm performance. (search for similar items in EconPapers)
JEL-codes: F14 F23 L60 (search for similar items in EconPapers)
Pages: 28 p.
Date: 2006
New Economics Papers: this item is included in nep-com, nep-cwa, nep-eff, nep-int and nep-tra
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Citations: View citations in EconPapers (4)

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Related works:
Journal Article: Effects of Foreign Presence in a Transition Economy: Regional and Industrywide Investments and Firm-Level Exports in Ukrainian Manufacturing (2008)
Working Paper: Effects of Foreign Presence in a Transition Economy: Regional and Industry-Wide Investments and Firm-Level Exports in Ukrainian Manufacturing (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:diw:diwwpp:dp594

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