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- Title
Tough Love: Do Czech Suppliers Learn from their Relationships with Multinationals?
- Authors
Javorcik, Beata S.; Spatareanu, Mariana
- Abstract
Countries strive to attract foreign direct investment hoping that knowledge brought by multinationals will spill over to domestic producers. While the literature has cast doubt on the existence of spillovers within industries, it has found evidence of spillovers from multinationals to the supplying sectors. However, the existing studies rely on industry-level proxies rather than information on actual relationships between suppliers and multinationals. This study goes one step further by employing a unique dataset from the Czech Republic where such relationships can be identified. It finds evidence consistent with both high productivity firms having a higher probability of supplying multinationals as well as suppliers learning from their relationships with multinationals.
- Subjects
CZECH Republic; FOREIGN investments; INTERNATIONAL business enterprises; ORIGINAL equipment manufacturers; INDUSTRIAL productivity
- Publication
Scandinavian Journal of Economics, 2009, Vol 111, Issue 4, p811
- ISSN
0347-0520
- Publication type
Article
- DOI
10.1111/j.1467-9442.2009.01591.x