Li, Chenyang; (2025) The Spillover of Foreign Direct Investment on Domestic Firm Growth in CEEs. Doctoral thesis (Ph.D), UCL (University College London).

Text Li_10209483_thesis.pdf Access restricted to UCL open access staff until 1 July 2026. Download (3MB)

Abstract

This thesis investigates the effects of Foreign Direct Investment (FDI) on domestic firms in Central and Eastern Europe (CEE). The first chapter conducts a meta-analysis of 40 empirical studies published between 2000 and 2017, synthesising 1040 empirical observations. By quantitatively reviewing these studies, the meta-analysis compares regression results and identifies heterogeneity between studies, particularly in assessing foreign spillovers in ten CEE countries. It highlights the challenges of using multiplicative interaction models in previous meta-analyses. The second chapter delves into the competition and imitation channels of FDI, exploring how foreign entry influences technology diffusion and competition dynamics in the domestic market. Employing a sharp regression discontinuity design, it compares the effects of FDI before and after foreign presence reaches a certain threshold. This chapter introduces innovative methodologies to address the nonlinear effects of FDI and identifies a significant crowding-out effect on domestic firms when foreign presence exceeds 13% of the market share. The third chapter addresses how FDI affects host countries, focusing on knowledge diffusion and labour mobility. Recognising the challenges in tracking intangible knowledge transfers, the research employs novel employer- employee level data to trace the flow of knowledge transfer between firms. Additionally, machine learning techniques are applied to identify key determinants of FDI, revealing the significance of foreign experience, country characteristics, and industry dynamics in influencing FDI outcomes. Overall, this thesis contributes to understanding FDI effects in CEE countries by synthesising existing literature, introducing novel data and innovative methodologies, and shedding light on the mechanisms underlying FDI spillovers and knowledge diffusion.

Download activity - last month

Export as JSONXMLCSV

Download activity - last 12 months

Export as JSONCSVXML

Downloads by country - last 12 months

Export as XMLCSVJSON

Archive Staff Only

View Item