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FDI and productivity convergence in Central and Eastern Europe: an industry-level investigation

[Zeitschriftenartikel]

Bijsterbosch, Martin; Kolasa, Marcin

Zitationshinweis

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Abstract This paper presents empirical evidence of the effect of FDI inflows on productivity convergence in Central and Eastern Europe, using a new and harmonized industry-level data set. Four conclusions stand out. First, there is a strong convergence effect in productivity, both at the country and at the industry level. Second, FDI inflow plays an important role in accounting for productivity growth. Third, the impact of FDI on productivity critically depends on the absorptive capacity of recipient countries and industries. Fourth, there is important heterogeneity across countries, industries and time with respect to some of the main findings.
Thesaurusschlagwörter foreign investment; Eastern Europe; productivity; international comparison
Klassifikation Volkswirtschaftslehre
Freie Schlagwörter Productivity convergence; FDI; Transition economies; Absorptive capacity; Panel data; JEL Classification: C23; F21; O33
Publikationsjahr 2010
Seitenangabe S. 689-712
Zeitschriftentitel Review of World Economics, 145 (2010) 4
DOI http://dx.doi.org/10.1007/s10290-009-0036-z
Status Postprint; begutachtet (peer reviewed)
Lizenz PEER Licence Agreement (applicable only to documents from PEER project)
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