Resource title

Effects of Foreign Presence in a Transition Economy: Regional and Industry-Wide Investments and Firm-Level Exports in Ukrainian Manufacturing

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Resource description

We investigate the effects of regional and industry?wide foreign presence and foreign direct investment (FDI) on export volumes of Ukrainian manufacturing firms using unpublished panel data from 1996?2000. Foreign presence through FDI may have negative competition effects on domestic firms? performance while, at the same time, domestic firms? productivity may be increased by technology transfer or through training and demonstration effects. From a Cournot competition model including negative competition and positive technologyspillover effects, we derive the hypotheses that foreign presence and foreign investment might positively affect domestic firms? output and exports. Our estimation results support these hypotheses and suggest in particular that large firms and durable?goods producers benefit most from foreign presence and investments.

Resource author

Stefan Lutz, Oleksandr Talavera, Sang-Min Park

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Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/18487

Resource license

Adapt according to the presented license agreement and reference the original author.