Agglomeration, foreign firms and firm exit in regions under transition: the increasing importance of related variety in Hungary

Kanó, Izabella Szakálné; Lengyel, Balázs; Elekes, Zoltán; Lengyel, Imre

doi:10.1080/09654313.2019.1606897

Cited by 14 publications

(14 citation statements)

References 76 publications

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“…Similar topics have also been investigated, e.g., from the perspective of a foreign shareholder's involvement in local business structure in various regions, including e. g. Italy (Gamba & Montanaro, 2009or Bentivogli & Mirenda, 2017, Norway (Ivanova et al, 2019), Poland (Nazarczuk & Krajewska, 2018), or Hungary (Kanó et al, 2019). Concerning the two latter countries, Elekes et al (2019) showed in a study of 67 Hungarian regions that foreign firms induce more structural change in regions than domestic firms do, and above-mentioned Nazarczuk and Krajewska (2018) proved that urbanisation was a significant factor describing the spatial agglomeration of FDIs in Poland.…”

Section: Literature Reviewmentioning

confidence: 99%

Enterprise ownership patterns in the least developed districts of Slovakia

Csabay

Vincúrová

Stoch

et al. 2021

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Research background: The literature overview shows a blank space regarding the effects of ownership on the determination of enterprises' spatial distribution. Various papers identify differences between determinants of the spatial distribution of foreign direct investments, exporters in foreign ownership, and domestically owned exporters; however, they mostly agree on the role of big cities, economic centres, and state of infrastructure as well as historical patterns. Purpose of the article: The article focuses on the spatial distribution analysis of enterprise units from their owner's perspective on the empirical evidence from all 79 districts of the Slovak Republic. Special attention is given to the category of the least developed districts. Methods: Within the presented article, the authors investigate the characteristics of the regional spatial distribution of business entities concerning standard ownership categories using the cluster analysis. The presented approach is twofold: firstly, the authors investigate the share of individual ownership types on the district level, and secondly, the number of enterprises by ownership categories is adjusted to 100,000 inhabitants. Cluster analysis and methods of spatial statistics are applied in both approaches. Findings & value added: The main results show a relation between the district's inclusion into the group of the least developed districts and enterprise ownership characteristics in these districts mainly through the relative underrepresentation of the secluded inland, foreign and international types of ownership, as well as their geographical clustering. The results of the presented research can be used in policy-making targeting business activity in underdeveloped districts. At the same time, the results provide basis for limited theoretical generalisations based on a single-country case study with regard to principles of business ownership structures development.

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Section: Literature Reviewmentioning

confidence: 99%

Enterprise ownership patterns in the least developed districts of Slovakia

Csabay

Vincúrová

Stoch

et al. 2021

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“…It is demonstrated that economic diversification is closely related to the current production structures; therefore, the recovery of the economy through sectoral related diversification should be approached in conjunction with other major processes, among which deindustrialization, skillbiased technological change, job polarization, and urbanization to influence the regional growth, requesting an increased role for policy and entrepreneurship to support unrelated diversification (Holm & Østergaard, 2018). Consequently, there are many structural barriers to economic development, especially in CEE regions having to cope with fast and profound institutional changes and inherited industrial structures (Szakálné Kanó et al, 2019).…”

Section: Deindustrialization In the 1990smentioning

confidence: 99%

“…There is wide recognition of the role direct foreign investments play in the post-1990 development of CEE countries in terms of economic growth, productivity improvement, and integration in the global supply chains. The bright side of international investment inflows is highlighted by the formative role of FDI in transition economies where domestic firms benefit from being agglomerated with technologically related foreign firms (Szakálné Kanó et al, 2019). The knowledge and technology transfer is central to the modernization of regional economies, especially because, as Boschma and Capone (2016) maintain, Eastern European countries, as compared with Western European ones, tend to diversify into new industries that are more closely related to their existing industries.…”

Section: Exogenously-led Growth Of Manufacturingmentioning

confidence: 99%

From command to market-driven economy: the changing role of manufacturing industries in Romania

Popescu¹

2021

hgeo

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In 1990, Romania and other CEE countries embarked on a political shift that prompted radical structural and spatial changes in economic activities. Industrial restructuring holds a central role in strengthening both EU convergence and internal socioeconomic divergence. The aim of this paper is to discuss the contribution of manufacturing to national wealth creation, the attractiveness of industries to foreign direct investments, and the evolutionary trajectories of manufacturing employment and firms in conjunction with the pathways taken at the level of the national economy. To attain this aim, we analyse in detail the period between 2002 and 2019, looking at the temporal dynamics of the industry in times of growth and crisis. The changes discussed are typical of economic restructuring, with regions and urban centres experiencing a dramatic change in their economic roles and functions and increasing inequalities between metropolitan and non-core regions.

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“…Finally, we adapt the related cluster variety to only consider either the presence of domestic or multinational industries in a region. We follow the same approach as Szakálné Kanó et al (2019). Considering only domestic industries in region r and at time t, p d (i, r, t) = 1/n d .…”

Section: Defining Our Cohesion Measuresmentioning

confidence: 99%

“…To detect these relationships we set up a panel probit regression model in a similar frame to Neffke et al (2011a) andSzakálné Kanó et al (2019).…”

Section: Modelling Frameworkmentioning

confidence: 99%

The role of relatedness and strategic linkages between domestic and MNE sectors in regional branching and resilience

Landman¹,

Ojanperä²,

Kinsella³

et al. 2021

Preprint

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Despite the key role of multinational enterprises (MNEs) in both international markets and domestic economies, there is no consensus on whether or how they positively impact their host economy. In particular, do MNEs foster the creation of new domestic firms through knowledge spillovers? In this study, we look at the impact of the presence of related MNE industries on the entry and exit of domestic export industries in Irish regions before, during, and after the 2008 financial crisis. Specifically, we are interested in whether the presence of MNEs in a region results in knowledge spillovers and the creation of new domestic export activities in related sectors. To quantify how related an industry is to a region's current export basket we deploy an existing cohesion variable, closeness, that measures the relatedness of a new industry to existing industries within a region. We also introduce a new variable, strategic closeness, which captures not only the relatedness of industries within a region but their own connectivity or embeddedness. We use a dataset containing all government-supported export firms in Ireland between 2006-2018. We find that the presence of related MNE industries is associated with the entry of new domestic activity, suggesting that Irish regions benefited from domestic-MNE linkages. However this relationship was temporarily lost after the financial crisis and only recently re-established, with domestic entry dependent on the presence of highly embedded MNE sectors. Furthermore, we find that related MNEs help protect domestic industries against exit after the crisis and thereby play a role in enhancing regional resilience.

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Agglomeration, foreign firms and firm exit in regions under transition: the increasing importance of related variety in Hungary

Cited by 14 publications

References 76 publications

Enterprise ownership patterns in the least developed districts of Slovakia

Enterprise ownership patterns in the least developed districts of Slovakia

From command to market-driven economy: the changing role of manufacturing industries in Romania

The role of relatedness and strategic linkages between domestic and MNE sectors in regional branching and resilience

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