Global Supply Chains at Work in Central and Eastern European Countries: Impact of FDI on Export Restructuring and Productivity Growth

VIVES Discussion Paper 37, 2013

36 Pages Posted: 1 Jul 2013

See all articles by Jože P. Damijan

Jože P. Damijan

University of Ljubljana, Slovenia - Department of International Economics

Črt Kostevc

University of Ljubljana - Faculty of Economics

Matija Rojec

University of Ljubljana - Faculty of Social Sciences

Date Written: March 20, 2013

Abstract

This paper empirically accounts for the importance of the 'global supply chains' concept for export restructuring and productivity growth in Central and Eastern European Countries (CEECs) in the period 1995-2007. Using industry-level data and accounting for technology intensity, we show that FDI has significantly contributed to export restructuring in the CEECs. The effects of FDI are, however, heterogenous across countries. While more advanced core CEECs succeeded in boosting exports in higher-end technology industries, non-core CEECs stuck with export specialization in lower-end technology industries. This suggests that where FDI flows have been directed is of key importance. Our results show that export restructuring and economic specialization brought about by FDI during the last two decades in the CEECs might matter a lot for their potential for long-run productivity growth. Industries of higher-end technology intensity have experienced substantially higher productivity growth and so have countries more successful in attracting FDI to these industries.

JEL Classification: F210, F230, L600, O140

Suggested Citation

Damijan, Joze P. and Kostevc, Crt and Rojec, Matija, Global Supply Chains at Work in Central and Eastern European Countries: Impact of FDI on Export Restructuring and Productivity Growth (March 20, 2013). VIVES Discussion Paper 37, 2013. Available at SSRN: https://ssrn.com/abstract=2287550 or http://dx.doi.org/10.2139/ssrn.2287550

Joze P. Damijan (Contact Author)

University of Ljubljana, Slovenia - Department of International Economics ( email )

Kardeljeva ploscad 17
Ljubljana, 1000
Slovenia
+386 61 189 24 00 (Phone)
+386 61 189 26 98 (Fax)

Crt Kostevc

University of Ljubljana - Faculty of Economics ( email )

Kardeljeva ploscad 17
Ljubljana, 1000
Slovenia

Matija Rojec

University of Ljubljana - Faculty of Social Sciences ( email )

Kardeljeva ploscad 5
Ljubljana, 1000
Slovenia

Register to save articles to
your library

Register

Paper statistics

Downloads
111
Abstract Views
527
rank
245,233
PlumX Metrics