Multinational enterprise strategy, foreign direct investment and economic development: the case of the Hungarian banking industry

Akbar, Yusaf H.; McBride, J. Brad

doi:10.1016/j.jwb.2003.08.001

Cited by 54 publications

(28 citation statements)

References 6 publications

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“…Moreover, we include financial services FDI. Relative unit labor costs are rising in Transition Economies and thus a well-functioning and competetive capital market is of high importance to FDI inflow, as Akbar and McBride (2004) state. We consider this fact in our study.…”

Section: Determinants Of Bilateral Fdi Stocksmentioning

confidence: 99%

“…It is crucial to know what determines the very large and highly important activity of foreign financial services. Among many studies on the benefits of opening up for foreign banks are Buch (1997), Mérö and Valentinyi (2003) and Akbar and McBride (2004). However, there are only a few recent empirical studies on the determinants of foreign banking activity in Central and Eastern European Transition Economies.…”

Section: Determinants Of Foreign Financial Servicesmentioning

confidence: 99%

“…Relative unit labor costs do not have any effect. Most likely, because the ULC seem to converge among countries and increase, as Akbar and McBride (2004) state. Specification (4) includes human capital of the whole labor force.…”

Section: Determinants Of Fdi In the Manufacturing Sectormentioning

confidence: 99%

“…For example, by 2004 most of Hungarian banks are fully or partially owned by multinationals (Akbar and McBride 2004). As reported by Buch (1997) the market share of foreign or joint-venture banks in total assets in 1995 was 22.7% in Hungary, 15.9% in Czech Republic and 4.4% in Poland.…”

Section: Introductionmentioning

confidence: 97%

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Interaction between Foreign Financial Services and Foreign Direct Investment in Transition Economies: An Empirical Analysis with Focus on the Manufacturing Sector

Cazzavillan

Olszewski

2009

SSRN Journal

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This paper studies the nexus between financial and non-financial foreign direct investment and its effect on manufacturing value added in Transition Economies, which are members of the EU. Three questions, which are pointed out in the theoretical literature, are discussed in the paper. We investigate whether financial services foreign direct investment has an effect on non-financial foreign direct investment; whether banks follow their clients; and whether there is any effect of foreign direct investment on economic growth. Those questions are tackled with empirical analysis using a dataset for 9 Transition Economies over the period 1996-2007. For most regressions we apply GMM and for one regression 2SLS, to tackle the endogeneity problem. The empirical results lead to three important statements: non-financial FDI is positively affected by financial services FDI and by market potential. Foreign banks in the EU Transition Economies are mainly driven by non-financial FDI and the capital intensity of a country. FDI crowds out domestic investment in the manufacturing sector.

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Section: Determinants Of Bilateral Fdi Stocksmentioning

confidence: 99%

Section: Determinants Of Foreign Financial Servicesmentioning

confidence: 99%

Section: Determinants Of Fdi In the Manufacturing Sectormentioning

confidence: 99%

Section: Introductionmentioning

confidence: 97%

See 2 more Smart Citations

Interaction between Foreign Financial Services and Foreign Direct Investment in Transition Economies: An Empirical Analysis with Focus on the Manufacturing Sector

Cazzavillan

Olszewski

2009

SSRN Journal

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“…Akbar 2003, Akbar and McBride 2004, Antal-Mokos 1998Bevan and Estrin 2000;Bridgewater et al 1995;Brouthers et al 1998;Estrin et al 1997;Estrin et al 2000;Fabry 2001;Hunya 2000aHunya , 2000bKonings 2001;Meyer 1998;Plikynas andAkbar 2006, Pye 1998;Zemplinerova 1998). First, causes of FDI in the region are interrelated to a number of factors including (but not limited to) availability of low-cost resources such as skilled labour; relative proximity to a major market for the MNEs; the role of public policy, e.g.…”

Section: (B) Foreign Direct Investment and Transformation In Central mentioning

confidence: 99%

Industrial Clustering and Global Value Chains in Central and Eastern Europe: Role of Multinational Enterprises in Industrial Upgrading

Akbar¹,

Ferenčíková²

2007

Prague Economic Papers

Self Cite

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Ab stract:The au thors are at tempt ing to draw to gether ex ist ing lit er a ture on the gov er nance of GVCs; re search on host coun try "spillovers" as a con se quence of MNE ac tiv ity and the broader clus ter and in no va tion lit er a ture. While clus ter re search had done im por tant work in iden ti fy ing and operationalizing the nec es sary con di tions for clus ter for ma tion, it had rel a tively ig nored the global-lo cal link age brought by the pres ence of MNEs. The "spillover" lit er a ture has iden ti fied in the ory nu mer ous ben e fits of MNE pres ence in host coun tries. There was rel a tively lit tle em pir i cal work done in CEE to dis cover if these ben e fits ac tu ally ex ist. Nei ther lit er a ture had fo cused on how MNEs gov ern their GVCs. Thus bring ing these sources together presents an important opportunity for international business. The au thors find that in the Slo vak case the in dus trial clus ters among the firms sur veyed were not much func tional. On a stra te gic level, there ap pears to be lit tle ev i dence of co op er a tion in ar eas of mar ket ing, ex port pro mo tion or in vest ment. This is es pe cially of con cern in sec tors such as au to mo tive where co op er a tive strat e gies among sup pli ers could offer significant benefits.Keywords: trans for ma tion in Cen tral and East ern Eu rope, for eign di rect in vest ment, in dus trial clus ter ing, mul ti na tional enterprise JEL Clas si fi ca tion: F21, F23 In tro duc tionDoes the in ser tion of lo cal clus ters into the global value chains of mul ti na tional en terprises (MNEs) en hance or un der mine the abil ity of the clus ter to suc cess fully pur sue upgrad ing strat e gies? What is the im pact of in ter ac tions be tween clus ters and global value chains (GVCs) on eco nomic de vel op ment? Palpacuer and Parisotto (2003: 98) ar gue that there is a "rec og ni tion that com ple men tary an a lyt i cal frame works should be combined in novel forms to ana lyse the in ter play be tween lo cal and global forces, and, ul timately, de vise new attitude to employment and development policies".

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The Role of Global Connectedness in the Development of Indigenous Science in Middle‐Income Countries

Barnard¹,

Cowan²,

Arranz³

et al. 2015

The Handbook of Global Science, Technology, and Innovation

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Multinational enterprise strategy, foreign direct investment and economic development: the case of the Hungarian banking industry

Cited by 54 publications

References 6 publications

Interaction between Foreign Financial Services and Foreign Direct Investment in Transition Economies: An Empirical Analysis with Focus on the Manufacturing Sector

Interaction between Foreign Financial Services and Foreign Direct Investment in Transition Economies: An Empirical Analysis with Focus on the Manufacturing Sector

Industrial Clustering and Global Value Chains in Central and Eastern Europe: Role of Multinational Enterprises in Industrial Upgrading

The Role of Global Connectedness in the Development of Indigenous Science in Middle‐Income Countries

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