Horizontal and Vertical FDI Spillovers: Recent Evidence from the Czech Republic

CERGE-EI Working Paper No. 340

39 Pages Posted: 15 Feb 2008

See all articles by Juraj Stancik

Juraj Stancik

Institute for Prospective Technological Studies; CERGE-EI

Date Written: September 2007

Abstract

This paper analyzes the effects of foreign direct investment on the sales growth rate of domestic companies in the Czech Republic. Using firm-level panel data from 1995 to 2003, it studies both horizontal and vertical spillovers. The study allows for the lagged nature of spillovers and pays attention to the potential endogeneity of FDI with respect to future industry growth. The results suggest that domestic companies are mostly suffering in the presence of foreign companies, especially in upstream sectors. Negative horizontal and forward spillovers are present mainly in recent years. Time sensitivity is revealed for horizontal spillovers.

Keywords: productivity, growth, spillovers, FDI, ownership

JEL Classification: C23, D24, D57, L6

Suggested Citation

Stancik, Juraj, Horizontal and Vertical FDI Spillovers: Recent Evidence from the Czech Republic (September 2007). CERGE-EI Working Paper No. 340, Available at SSRN: https://ssrn.com/abstract=1093662 or http://dx.doi.org/10.2139/ssrn.1093662

Juraj Stancik (Contact Author)

Institute for Prospective Technological Studies ( email )

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CERGE-EI ( email )

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Czech Republic

HOME PAGE: http://www.cerge-ei.cz

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