Open AccessImpact of foreign direct investment on the restructuring and growth in manufacturing
Author(s) -
Alena Zemplinerová
Publication year - 1998
Publication title -
prague economic papers
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.233
H-Index - 17
eISSN - 2336-730X
pISSN - 1210-0455
DOI - 10.18267/j.pep.159
Subject(s) - restructuring , foreign direct investment , business , manufacturing , equity (law) , international economics , industrial organization , market economy , economics , finance , macroeconomics , marketing , political science , law
Nation-wide firm-level data are used for the time series and cross-section analysis of foreign direct investment in manufacturing on 2digit and 3digit industries. Dynamics of foreign investment enterprises (FIEs) are computed for the period 1993-1996. The performance of FIEs is compared with the domestic enterprises. Related policy issues ere discussed. Although the share of foreign investment enterprises in the total manufacturing output doubled during the period 1993-96, with 23 % remains relatively low in comparison with Hungary where the respective share in output reached 67 % by 1996. Foreign penetration via equity ownership is low in the industries with excess capacities end need for extensive restructuring such as steel industry or large machinery, chemicals, coke end refinery. Allocation pattern of FIEs differs from domestic enterprises. Foreign investment is more specialised and concentrated than domestic enterprises.