Related trade variety, foreign-domestic spillovers and regional employment in Hungary

Elekes, Zoltán and Lengyel, Balázs (2020) Related trade variety, foreign-domestic spillovers and regional employment in Hungary. Acta Oeconomica, 70 (4). pp. 551-570. DOI

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This paper investigates the role of extra-regional capabilities in regional economic development in a Central and Eastern European context.This is done by analysing the association between the related variety of manufacturing import and export of domestic- and foreign-owned firms on the one hand, and regional employment in manufacturing export on the other. By means of a panel regression framework applied to the Hungarianmicroregions between 2000 and 2011, we find that domesticfirms, in particular, benefit from the related varietyof export activities in the regions, while import related to existing export activities is beneficial amongst bothforeign and domestic firms. Furthermore, bridging the technological gap between foreign companies and thehost economy requires stronger technological relatedness, unless domestic firms have experience in importing.

Item Type:Article
Uncontrolled Keywords:related variety, international trade, MNEs, host economy, regional growth
JEL classification:B52 - Current Heterodox Approaches: Institutional; Evolutionary
O30 - Innovation, Research and Development, Technological Change, Intellectual Property Rights: General
R11 - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
R12 - Size and Spatial Distributions of Regional Economic Activity
Divisions:Corvinus Institute for Advanced Studies (CIAS)
Subjects:International economics
Regional economy
ID Code:6220
Deposited By: MTMT SWORD
Deposited On:08 Jan 2021 14:23
Last Modified:13 Apr 2022 13:10

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