The Impact of FDI on Bilateral Exports: The Case of the Automotive Industry in the Visegrad Countries
The Impact of FDI on Bilateral Exports: The Case of the Automotive Industry in the Visegrad Countries
Author(s): Kristóf GyódiSubject(s): Economy, Supranational / Global Economy
Published by: Uniwersytet Warszawski - Wydział Nauk Ekonomicznych
Keywords: Foreign Direct Investment; Visegrad countries; automotive industry; export; OECD; restructuring
Summary/Abstract: This analysis presents the effect of foreign direct investments in the automotive industry on the automotive exports of the Visegrad countries. The econometric analysis is based on the gravity model of trade. The author uses panel data to estimate variables that impact the automotive export. The data consists of the bilateral flows of trade and investments between the Visegrad countries and the other members of the OECD. The empirical analysis shows a positive correlation between the value of the FDI stock in the car industry and the automotive exports to the country of origin of investment. The results of the analysis prove that the Visegrad countries export a significant part of their automotive production to the home countries of the investing MNCs.
Journal: Ekonomia. Rynek, Gospodarka, Społeczeństwo
- Issue Year: 2014
- Issue No: 37
- Page Range: 57-78
- Page Count: 22
- Language: English