Politická ekonomie 2017, 65(4):391-409 | DOI: 10.18267/j.polek.1151

VLIV PŘÍMÝCH ZAHRANIČNÍCH INVESTIC NA DODAVATELSKÉ VZTAHY A POSTAVENÍ DOMÁCÍCH VÝROBCŮ MEZIPRODUKTŮ

Jan Hanousek1, Evžen Kočenda2, Pavla Vozárová3
1 Jan Hanousek (jan.hanousek@cerge-ei.cz), CERGE-EI, společné pracoviště UK a NHÚ AV ČR; CEPR, Londýn
2 Evžen Kočenda (evzen.kocenda@fsv.cuni.cz), Institut ekonomických studií Fakulty sociálních věd UK; Ústav teorie informace a automatizace AV ČR, Praha; CESifo, Mnichov; IOS, Řezno; Euro Area Business Cycle Network
3 Pavla Vozárová (pavla.vozarova@fit.cvut.cz), Fakulta informačních technologií ČVUT

FDI's Impact on Inter-industry Interactions among Domestic Suppliers of Intermediate Goods

In this paper, we analyze the extent of the impact of FDI on the host economy according to theoretical predictions. Within a broader context of international trade flows, we focus on inter-industry interactions between a multinational enterprise (MNE) that enters the domestic market and other firms in the economy. We seek to determine if the MNE uses domestic suppliers of intermediate goods or if it purchases its supplies from abroad or from other MNEs entering the downstream sector. Our analysis covers both Western and Eastern European countries over the period 2001-2007. Our results show that FDI increases the demand for intermediary goods. However, domestic producers of these goods can benefit only partially from this positive shock, since they are at the same time crowded-out by MNEs entering the upstream sector as well as by importers.

Keywords: FDI, international trade, multinational enterprise, downstream sector, inter-industry interactions, Europe
JEL classification: C23, F14, F21, F23

Published: August 1, 2017  Show citation

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Hanousek, J., Kočenda, E., & Vozárová, P. (2017). FDI's Impact on Inter-industry Interactions among Domestic Suppliers of Intermediate Goods. Politická ekonomie, 65(4), 391-409. doi: 10.18267/j.polek.1151
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