THE ROLE OF FOREIGN DIRECT INVESTMENT IN THE FIRM SELECTION PROCESS IN A HOST COUNTRY: EVIDENCE FROM SLOVENIA

This paper examines the role of inward foreign direct investment (FDI) in firm selection processes in the Slovenian manufacturing sector in the 1994-2003 period by assessing the impact of the entry and presence of foreign firms on a domestic firm’s probability of exiting. The results confirm that not only do foreign entrants tend to be above-average productive but they also find it easier to exit (particularly those entering in the form of acquisitions). Further, the least efficient firms are found to experience a drop in their survival probability upon a foreign firm’s entry. In addition, a foreign firm’s entry seems to stimulate the selection process not only within the industry but also through backward linkages in the upstream supplying industries. Regarding the productivity spillover effects from foreign to local firms the results suggest that they mostly operate through vertical linkages rather than within the same industry.http://deepblue.lib.umich.edu/bitstream/2027.42/57221/1/wp841 .pd

THE ROLE OF FOREIGN DIRECT INVESTMENT IN THE FIRM SELECTION PROCESS IN A HOST COUNTRY: EVIDENCE FROM SLOVENIA

This paper examines the role of inward foreign direct investment (FDI) in firm selection processes in the Slovenian manufacturing sector in the 1994-2003 period by assessing the impact of the entry and presence of foreign firms on a domestic firm’s probability of exiting. The results confirm that not only do foreign entrants tend to be above-average productive but they also find it easier to exit (particularly those entering in the form of acquisitions). Further, the least efficient firms are found to experience a drop in their survival probability upon a foreign firm’s entry. In addition, a foreign firm’s entry seems to stimulate the selection process not only within the industry but also through backward linkages in the upstream supplying industries. Regarding the productivity spillover effects from foreign to local firms the results suggest that they mostly operate through vertical linkages rather than within the same industry.foreign direct investment, firm selection process, crowding out, productivity spillovers, Slovenia

The Importance Of Performance Management Tools Usage For Surviving The Economic Crisis

The main objective of our research is to explore how using performance management (PM) tools impact the exit hazard of firms by considering a sample of Slovenian firms during the recent economic crisis. The paper finds that, when firm and industry characteristics are not accounted for, the firms that used PM tools in 2007 experienced around a 6 percentage points lower hazard of shutting down during the current economic crisis. Further, our study supports the view that firm size and age are more important determinants of a firms survival probability than the influence of using PM tools (and other firm characteristics) due to a strong and significant correlation between the use of PM tools and firm size and age

Ulazne direktne inozemne investicije i industrijsko prestrukturiranje: Mikro aspect – model rasta slovenskih poduzeća

We examine the impact of inward foreign direct investment (FDI) on the growth of local firms in terms of employment and total factor productivity (TFP) for the Slovenian manufacturing sector in the 1994-2003 period. The theoretically predicted channels through which inward FDI affects the firm dynamics in a host country prove to be in general significant. First, there is evidence of the direct impact of foreign firms through so-called direct technology transfer as foreign-owned firms have higher growth of TFP compared to domestically-owned firms after controlling for other determinants. Secondly, the entry of foreign firms stimulates the reshuffling of the resources from less to more efficient local firms. The firm selection process is, namely, characterised by the least efficient firms experiencing a drop in their employment growth upon a foreign firm’s entry. Thirdly, regarding the productivity spillover effects from foreign to local firms we provide indirect evidence that they mostly operate through vertical linkages rather than within the same industry. In general, it seems that not all firms are equally able to benefit from foreign firms’ presence and that absorptive capacity plays an important role.Izučava se utjecaj ulaznih izravnih inozemnih investicija (FDI) na rast domaćih (lokalnih) poduzeća s aspekta zaposlenosti i cjelokupne faktorske produktivnosti (TFP). Analiza je izvedena za sektor industrijskih poduzeća u Sloveniji od 1994. do 2003. godine. Teorija upućuje na zaključak, da su dinamičke promjene u poduzećima države u koju investicije ulaze putem mehanizama (channels) FDI značajne. U svezi s teorijskom osnovom izvedene analize i evidencije upućuju na zaključak da poduzeća u stranom vlasništvu imaju izravan utjecaj na promjene u populaciji slovenskih industrijskih poduzeća. Poduzeća u stranom vlasništvu, uz analitičku neutralizaciju drugih mogućih utjecaja, iskazuju brži rast TEP u odnosu na poduzeća u domaćem vlasništvu. Pored toga, ulazak stranih poduzeća na nacionalno tržište dovodi do preusmjeravanja činitelja proizvodnje od manje na više učinkovita lokalna poduzeća. Proces selekcije između poduzeća dovodi do toga, da najmanje učinkoviti iskazuju opadanje zaposlenosti kao posljedicu ulaska stranih poduzeća. Pored navedenih, nastaje i treći učinak povezan s ulaskom stranih poduzeća. On je povezan s širenjem utjecaja promjena u produktivnosti (productivity spillover effects) od stranih na domaća/lokalna poduzeća na neizravan način, te je utvrđeno da do ovoga učinka dolazi uglavnom preko vertikalnih poslovnih veza, a ne kako je očekivano pretežno horizontalno, dakle unutar iste djelatnosti. Općenito se može tvrditi da strane investicije nemaju isti pozitivni utjecaj na sva poduzeća i da u tom kontekstu veliki značaj ima sposobnost apsorpcije – prilagodbe na promjene u poduuzetničkom sektoru

Intellectual property and the organization of the global value chain

This paper introduces the concept of intangible assets in a property rights model of sequential supply chains. Firms transmit knowledge to their suppliers to facilitate input customization. Yet, to avoid knowledge dissipation, they must protect the transmitted intangibles, the cost of which depends on the knowledge intensity of inputs and the quality of institutions protecting intellectual property rights (IPR) in supplier locations. When input knowledge intensity increases (decreases) downstream and suppliers' investments are complements, the probability of integrating a randomly selected input is decreasing (increasing) in IPR quality and increasing (decreasing) in the relative knowledge intensity of downstream inputs. Opposite but weaker predictions hold when suppliers' investments are substitutes. Comprehensive trade and FDI data on Slovenian firms' value chains provide evidence in support of our model's predictions. They also suggest that, in line with our model, better institutions may have very different effects on firm organization depending on whether they improve the protection of tangible or intangible assets

The role of regional economic integrations for trade margins: A case of Croatia

Cilj ovog rada je istražiti razvoj intenzivnih i ekstenzivnih trgovinskih marži na razini proizvod-država za slučaj Hrvatske od 2000. do 2012. godine. Hipoteza istraživanja je da će liberalizacija trgovine, potaknuta sklapanjem regionalnih trgovinskih sporazuma, imati heterogene učinke na različite skupine proizvoda, uz indirektne učinke na nacionalno blagostanje. Koristi se statički i dinamički gravitacijski model koji se primjenjuje na panel podatke koji obuhvaćaju preko 90% ukupne trgovine u promatranom razdoblju. Ocjene gravitacijskog modela pokazuju da, iako su SAA i CEFTA sporazumi imali pozitivne učinke na intenzivne i ekstenzivne trgovinske marže, posebice na izvoz i uvoz potrošačkih proizvoda, učinci na trgovinu intermedijarnim i kapitalnim dobrima su relativno ograničeni. To ukazuje da su navedeni sporazumi imali snažniji učinak na zadovoljenje potreba potrošača, a ne na porast učinkovitosti domaćeg trgovinskog sektora. Pri usporedbi rezultata učinaka sporazuma koristeći dinamički model, jasan je snažniji utjecaj SAA sporazuma na potrošačka dobra, dok su učinci CEFTA sporazuma ujednačeni za sve skupine dobara. Zaključak je da bi se, u srednjem roku, nositelji hrvatske vanjske politike trebali izboriti za preferencijalni status Hrvatske na CEFTA tržištu, uzimajući u obzir njegovu važnost za hrvatsko gospodarstvo.The goal of this investigation is to research the development of intensive and extensive trade margins on product-country level data for Croatia during the period 2000–2012. Hypothesis of our paper is that RTAs-induced trade liberalization will have heterogeneous effects on particular product groups with indirect implications on national welfare. Static and dynamic gravity trade models are used on panel data accounting for over 90% of total trade during the observed period. Estimations of the trade gravity model and trade margins showed that while SAA and CEFTA arrangements positively affected different measures of intensive and extensive trade margins, specially exports and imports of consumption products, effects on trade in intermediate and capital goods were relatively subdued. This suggests a tendency for market-seeking rather than efficiency-seeking behaviour of Croatia’s trade sector. When comparing the results for two trade agreements using dynamic model, we find that SAA primarily affected trade in consumption goods while effects of CEFTA are more evenly dispersed across different product groups. Main conclusion of the paper is that Croatia’s policy makers should try to keep the preferential status of Croatia within the CEFTA market in the medium term, focusing on the Croatian econom

Firm-level export duration

This paper explores the impact of a firm’s market-specific ownership linkages and trade complementarities on different dimensions of its exporting longevity. Unlike previous studies that were mostly based on country-product level data, this paper uses transaction-level trade data on the population of firms in Slovenia in the 2002–2011 period, matched with detailed origin/direction of inward/outward FDI information to determine a firm’s integration in international production networks. Our results indicate that firm’s bilateral inward and outward FDI flows with an export-destination country have a strong positive effect on a firm’s export survival in that market. Importance of market-specific ownership linkages for export duration is exclusively driven by intermediate goods which suggests prolonged export duration through production network involvement. However, the perseverance effect of bilateral FDI ties on export spells has been weakened during the crisis period. We find pronounced market- and product-related trade complementarities as either exporting or importing experience with the relevant market/product substantially improves the chances of a product-market export spell continuing. Finally, the risk of exports termination is lower for a firm’s core export products

Comparative analysis of the selected folk tales from the collections of kristina brenk

Diplomska naloga zajema teoretični in empirični del. V teoretičnem delu bom predstavila urednico obeh zbirk, ki jih bom primerjala - Kristino Brenk. Opisala bom predstavnika literarnoteoretičnega pristopa Maxa Lüthija. V svoji monografiji je prikazal pet značilnosti pravljice. Sledi predstavitev Marie Nikolajeve in verbalno vizualnega odnosa v slikanici. Zanima me koliko in kje se pravljica omenja v Kurikulumu za vrtce in v priročniku h kurikulu. V empiričnem delu bom predstavila zbirki ljudskih pravljic Kristine Brenk. Primerjala bom šest pravljic glede na značilnosti M. Lüthija in analizirala verbalno vizualni odnos. S tem bom ugotovila kako so si pravljice podobne in kako se razlikujejo. Zanima me tudi kaj je izraženo verbalno in kaj vizualno. Cilj diplomske naloge je ugotoviti, v čem so si pravljice iz obeh zbirk podobne in kje se razlikujejo. Namen je tudi ugotoviti verbalno vizualen odnos v izbranih pravljicah.There is a theoretical and empirical part in this diploma thesis. The theoretical part presents Kristina Brenk, the editor of both collections in comparison. I will describe a representative of literary theory, Max Lüthi. He described the five features of a fairy tale in his monograph. This is followed by a presentation of Maria Nikolaeva and the verbal-visual relationship in the picture book. I am interested in how much and where the fairy tale is mentioned in the Kindergarten Curriculum and in the Curriculum Handbook. The empirical part presents a collection of folk tales by Kristina Brenk. I will compare six fairy tales according to the characteristics of Max Lüthi and analyze the verbal-visual relationship. This will help me find similarities and differences between the fairy tales. I am also interested in what is expressed verbally and what visually. The purpose of the diploma thesis is to find out how the fairy tales from both collections are similar and where they differ. Another aim is to determine the verbal-visual relationship in the fairy tales

Comparative analysis of the selected folk tales from the collections of kristina brenk

Diplomska naloga zajema teoretični in empirični del. V teoretičnem delu bom predstavila urednico obeh zbirk, ki jih bom primerjala - Kristino Brenk. Opisala bom predstavnika literarnoteoretičnega pristopa Maxa Lüthija. V svoji monografiji je prikazal pet značilnosti pravljice. Sledi predstavitev Marie Nikolajeve in verbalno vizualnega odnosa v slikanici. Zanima me koliko in kje se pravljica omenja v Kurikulumu za vrtce in v priročniku h kurikulu. V empiričnem delu bom predstavila zbirki ljudskih pravljic Kristine Brenk. Primerjala bom šest pravljic glede na značilnosti M. Lüthija in analizirala verbalno vizualni odnos. S tem bom ugotovila kako so si pravljice podobne in kako se razlikujejo. Zanima me tudi kaj je izraženo verbalno in kaj vizualno. Cilj diplomske naloge je ugotoviti, v čem so si pravljice iz obeh zbirk podobne in kje se razlikujejo. Namen je tudi ugotoviti verbalno vizualen odnos v izbranih pravljicah.There is a theoretical and empirical part in this diploma thesis. The theoretical part presents Kristina Brenk, the editor of both collections in comparison. I will describe a representative of literary theory, Max Lüthi. He described the five features of a fairy tale in his monograph. This is followed by a presentation of Maria Nikolaeva and the verbal-visual relationship in the picture book. I am interested in how much and where the fairy tale is mentioned in the Kindergarten Curriculum and in the Curriculum Handbook. The empirical part presents a collection of folk tales by Kristina Brenk. I will compare six fairy tales according to the characteristics of Max Lüthi and analyze the verbal-visual relationship. This will help me find similarities and differences between the fairy tales. I am also interested in what is expressed verbally and what visually. The purpose of the diploma thesis is to find out how the fairy tales from both collections are similar and where they differ. Another aim is to determine the verbal-visual relationship in the fairy tales