DO FOREIGN FIRMS CROWD OUT DOMESTIC FIRMS? EVIDENCE FROM THE CZECH REPUBLIC

• 成果类型: Article
• 署名作者: Kosova, Renata
• 署名单位: Cornell University
• 刊物名称: REVIEW OF ECONOMICS AND STATISTICS
• ISSN/ISSBN: 0034-6535
• DOI: 10.1162/REST_a_00035
• 发表日期: 2010-11
• 页码: 861-881
• 关键词: direct-investment; technology-transfer; panel-data; multinational-enterprises; spillovers; PRODUCTIVITY; GROWTH; FDI; COMPETITION; selection

摘要

I examine how foreign presence affects the growth and survival of domestic firms. Separating a negative crowding out and positive technology spillovers, I analyze whether the crowding out effect is dynamic, that is, domestic firms cut production over time as foreign firms grow, or a static effect realized on foreign entry into the industry. Using 1994-2001 firm-level Czech data, I find evidence of both technology spillovers and crowding Out. However, crowding out is only short term; after initial entry shakeout, growing foreign sales increase domestic firm growth and survival, indicating domestic demand creation effect. However, I find no such benefits from domestic competition.