Mothers and daughters : Heterogeneity of germandirect investments in the Czech Republic
(2014) In Prague Economic Papers p.42-62- Abstract
Much has been written on the distinction between vertical and horizontal foreign direct investment. However, most of the empirical literature relies on indirect and aggregated measures only. The aim of this paper is to help fill this gap by examining the differences between German affiliates in the Czech Republic and their mother companies in Germany on the basis of direct evidence on factor requirements. Using a cluster analysis on firm-level data from the unique ReLOC survey, we identify four main groups of firms that partition the sample by broad sectoral lines and by technological, educational and skill intensity of their operations within each of them. More detailed analysis of the clustering reveals that the vertical model... (More)
Much has been written on the distinction between vertical and horizontal foreign direct investment. However, most of the empirical literature relies on indirect and aggregated measures only. The aim of this paper is to help fill this gap by examining the differences between German affiliates in the Czech Republic and their mother companies in Germany on the basis of direct evidence on factor requirements. Using a cluster analysis on firm-level data from the unique ReLOC survey, we identify four main groups of firms that partition the sample by broad sectoral lines and by technological, educational and skill intensity of their operations within each of them. More detailed analysis of the clustering reveals that the vertical model dominates in manufacturing, while the horizontal model of investment prevails in the service sector.
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- author
- Münich, Daniel ; Srholec, Martin LU ; Moritz, Michael and Schäffler, Johannes
- publishing date
- 2014
- type
- Contribution to journal
- publication status
- published
- subject
- keywords
- Cluster analysis, Czech Republic, Foreign affiliate, Germany, Multinational enterprise, Vertical investment
- in
- Prague Economic Papers
- issue
- 1
- pages
- 21 pages
- publisher
- University of Economics - Prague
- external identifiers
-
- scopus:84920847558
- ISSN
- 1210-0455
- language
- English
- LU publication?
- no
- id
- 4123f337-741c-4df1-a88e-013f8aecff72
- date added to LUP
- 2016-05-18 13:16:56
- date last changed
- 2022-01-30 03:32:34
@article{4123f337-741c-4df1-a88e-013f8aecff72,
abstract = {{<p>Much has been written on the distinction between vertical and horizontal foreign direct investment. However, most of the empirical literature relies on indirect and aggregated measures only. The aim of this paper is to help fill this gap by examining the differences between German affiliates in the Czech Republic and their mother companies in Germany on the basis of direct evidence on factor requirements. Using a cluster analysis on firm-level data from the unique ReLOC survey, we identify four main groups of firms that partition the sample by broad sectoral lines and by technological, educational and skill intensity of their operations within each of them. More detailed analysis of the clustering reveals that the vertical model dominates in manufacturing, while the horizontal model of investment prevails in the service sector.</p>}},
author = {{Münich, Daniel and Srholec, Martin and Moritz, Michael and Schäffler, Johannes}},
issn = {{1210-0455}},
keywords = {{Cluster analysis; Czech Republic; Foreign affiliate; Germany; Multinational enterprise; Vertical investment}},
language = {{eng}},
number = {{1}},
pages = {{42--62}},
publisher = {{University of Economics - Prague}},
series = {{Prague Economic Papers}},
title = {{Mothers and daughters : Heterogeneity of germandirect investments in the Czech Republic}},
year = {{2014}},
}