Spillovers from Multinationals to Heterogeneous Domestic Firms: Evidence from Hungary

Firms cluster their economic activities to exploit technological and informational spillovers from other firms. Spillovers from multinational firms can be particularly beneficial to firms in less developed economies, because technological superiority and management expertise of foreign multinational...

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Bibliographic Details
Published in:World economy 2009-10, Vol.32 (10), p.1408-1433
Main Authors: Békés, Gábor, Kleinert, Jörn, Toubal, Farid
Format: Article
Language:English
Subjects:
Domestic market
Economic impact analysis
Economics and Finance
Exports
Exports and Imports
Foreign direct investment
Humanities and Social Sciences
Hungary
International economics
Management
Multinational Corporations
Multinational enterprises
Organizational learning
Productivity
Respect
Spillovers
Studies
Technology transfer
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Summary:Firms cluster their economic activities to exploit technological and informational spillovers from other firms. Spillovers from multinational firms can be particularly beneficial to firms in less developed economies, because technological superiority and management expertise of foreign multinational firms yield various opportunities for learning. Yet, the importance of foreign firms’ spillovers might vary with respect to two key features of domestic firms: their productivity level and their export status. In line with theories on the absorptive capacity of firms, we argue on the basis of an empirical analysis of Hungarian firms that larger and more productive firms are more able than smaller firms to reap spillovers from multinationals. However, the export status is found to be of minor importance once higher productivity is controlled for.
ISSN:0378-5920
1467-9701
DOI:10.1111/j.1467-9701.2009.01179.x