We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
DO FOREIGN FIRMS CROWD OUT DOMESTIC FIRMS? EVIDENCE FROM THE CZECH REPUBLIC.
- Authors
Kosová, Renáta
- Abstract
I examine how foreign presence affects the growth and survival of domestic firms. Separating a negative crowding out and positive technology spillovers, I analyze whether the crowding out effect is dynamic, that is, domestic firms cut production over time as foreign firms grow, or a static effect realized on foreign entry into the industry. Using 1994--2001 firm-level Czech data, I find evidence of both technology spillovers and crowding out. However, crowding out is only short term; after initial entry shakeout, growing foreign sales increase domestic firm growth and survival, indicating domestic demand creation effect. However, I find no such benefits from domestic competition.
- Subjects
CZECH Republic; FOREIGN business enterprises; ECONOMIC competition; CROWDING out (Economics); ORGANIZATIONAL growth; INSTITUTIONAL survival; ECONOMIC development; SHORT run (Economics); LONG run (Economics); TECHNOLOGICAL innovations &; economics; MATHEMATICAL models
- Publication
Review of Economics & Statistics, 2010, Vol 92, Issue 4, p861
- ISSN
0034-6535
- Publication type
Article