Home Social Sciences FDI Uppers and Downers: A Macedonian Case Study
Article
Licensed
Unlicensed Requires Authentication

FDI Uppers and Downers: A Macedonian Case Study

  • Mico Apostolov EMAIL logo
Published/Copyright: April 22, 2017

Abstract

This article examines how foreign direct investments influence the performance and entrepreneurship of domestic firms, a crucial question for economies – especially transition economies – driven by the incursion of global, exogenous factors. This research uses a qualitative research methodology, and specifically a case study method. The country in question is Macedonia, a Southeast European economy. Further, the study is interested in the way foreign direct investments shape the overall business environment. Overall, the results point to the influence of foreign firms in assisting business activity. The impact of foreign investment is, in general, positive, and tends to influence the restructuring process of domestic economy.

References

Acemoglu, D., R. Griffith, P. Aghion, and F. Zilibotti. 2010. “Vertical Integration and Technology: Theory and Evidence.” Journal of the European Economic Association 8 (5):989–1033.10.1162/jeea_a_00013Search in Google Scholar

Aitken, B.J., and A.E. Harrison. 1999. “Do Domestic Firms Benefit from Direct Foreign Investment? Evidence from Venezuela.” American Economic Review 89 (3):605–618.10.1257/aer.89.3.605Search in Google Scholar

Apostolov, M. 2014. “Governance and Enterprise Restructuring: The Case of Macedonia.” International Journal of Emerging Markets 9 (1):147–156.10.1108/IJoEM-06-2011-0057Search in Google Scholar

Apostolov, M. 2016. “The Role of Foreign Direct Investments in Southeastern Europe.” Revue D’études Comparatives Est-Ouest 47 (03):45–82.10.4074/S0338059916003028Search in Google Scholar

Arnold, J.M., and B.S. Javorcik. 2009. “Gifted Kids or Pushy Parents? Foreign Direct Investment and Plant Productivity in Indonesia.” Journal of International Economics 79 (1):42–53.10.1016/j.jinteco.2009.05.004Search in Google Scholar

Arnold, J.M., B.S. Javorcik, and A. Mattoo. 2011. “Does Services Liberalization Benefit Manufacturing Firms?: Evidence from the Czech Republic.” Journal of International Economics 85 (1):136–146.10.1596/1813-9450-4109Search in Google Scholar

Barrios, S., H. Görg, and E. Strobl. 2011. “Spillovers through Backward Linkages from Multinationals: Measurement Matters!.” European Economic Review 55 (6):862–875.10.1142/9789814749237_0011Search in Google Scholar

Beugelsdijk, S., R. Smeets, and R. Zwinkels. 2008. “The Impact of Horizontal and Vertical FDI on Host’s Country Economic Growth.” International Business Review 17 (4):452–472.10.1016/j.ibusrev.2008.02.004Search in Google Scholar

Bitzenis, A. 2003. “Universal Model of Theories Determining FDI. Is There Any Dominant Theory? are the FDI Inflows in the CEE Countries and Especially in Bulgaria a Myth?.” European Business Review 15 (2):94–104.10.1108/09555340310464722Search in Google Scholar

Blalock, G., and P.J. Gertler. 2008. “Welfare Gains from Foreign Direct Investment through Technology Transfer to Local Suppliers.” Journal of International Economics 74 (2):402–421.10.1016/j.jinteco.2007.05.011Search in Google Scholar

Blanchard, O. 1998. The Economics of Post-Communist Transition. Oxford: Oxford University Press.10.1093/0198293992.001.0001Search in Google Scholar

Blomström, M., S. Globerman, and A. Kokko. 2001. “The Determinants of Host Country Spillovers from Foreign Direct Investment: Review and Synthesis of the Literature.” In Inward Investment, Technological Change and Growth: The Impact of Multinational Corporations on the UK Economy, edited by N. Pain, 34–66. London: Palgrave.10.1057/9780230598447_2Search in Google Scholar

Blomström, M., and F. Sjöholm. 1999. “Technology Transfer and Spillovers: Does Local Participation with Multinationals Matter?.” European Economic Review 43 (4–6):915–923.10.3386/w6816Search in Google Scholar

Blonigen, B. 2005. “A Review of the Empirical Literature on FDI Determinants.” Atlantic Economic Journal 33 (4):383–403.10.3386/w11299Search in Google Scholar

Calvet, A.L. 1981. “A Synthesis of Foreign Direct Investment Theories and Theories of the Multinational Firm.” Journal of International Business Studies 12 (1):43–59.10.1057/palgrave.jibs.8490570Search in Google Scholar

Cantwell, J., and L. Piscitello. 2002. “The Location of Technological Activities of Mncs in European Regions: The Role of Spillovers and Local Competencies.” Journal of International Management 8 (1):69–96.10.1016/S1075-4253(01)00056-4Search in Google Scholar

Christopher, M. 1999. ““Logistics and Supply Chain Management: Strategies for Reducing Cost and Improving Service (Second Edition)..” International Journal of Logistics Research and Applications 2 (1):103–104.10.1080/13675569908901575Search in Google Scholar

Criscuolo, C., J.E. Haskel, and M.J. Slaughter. 2010. “Global Engagement and the Innovation Activities of Firms.” International Journal of Industrial Organization 28 (2):191–202.10.3386/w11479Search in Google Scholar

Damijan, J., Č. Kostevc, and M. Rojec. 2015. “Growing Lemons or Cherries? Pre and Post-Acquisition Performance of Foreign-Acquired Firms in New EU Member States.” The World Economy 38 (4):751–772.10.1111/twec.12176Search in Google Scholar

Damijan, J.P., M. Knell, B. Majcen, and M. Rojec. 2003. “The Role of FDI, R&D Accumulation and Trade in Transferring Technology to Transition Countries: Evidence from Firm Panel Data for Eight Transition Countries.” Economic Systems 27 (2):189–204.10.1016/S0939-3625(03)00039-6Search in Google Scholar

Damijan, J.P., M. Rojec, B. Majcen, and M. Knell. 2013. “Impact of Firm Heterogeneity on Direct and Spillover Effects of FDI: Micro-Evidence from Ten Transition Countries.” Journal of Comparative Economics 41 (3):895–922.10.1016/j.jce.2012.12.001Search in Google Scholar

Davis, T. 1993. “Effective Supply Chain Management.” Sloan Management Review 34 (4):35.Search in Google Scholar

Djankov, S., and B. Hoekman. 2000. “Foreign Investment and Productivity Growth in Czech Enterprises.” The World Bank Economic Review 14 (1):49–64.10.1093/wber/14.1.49Search in Google Scholar

Dunning, J.H. 2000. “The Eclectic Paradigm as an Envelope for Economic and Business Theories of MNE Activity.” International Business Review 9 (2):163–190.10.1016/S0969-5931(99)00035-9Search in Google Scholar

Fosfuri, A., M. Motta, and T. Rønde. 2001. “Foreign Direct Investment and Spillovers through Workers’ Mobility.” Journal of International Economics 53 (1):205–222.10.1016/S0022-1996(00)00069-6Search in Google Scholar

Girma, S., Y. Gong, and S. Lancheros. 2015a. “Estimating Direct and Indirect Effects of Foreign Direct Investment on Firm Productivity in the Presence of Interactions between Firms.” Journal of International Economics 95 (1):157–169.10.1142/9789814749237_0012Search in Google Scholar

Girma, S., Y. Gong, H. Görg, and S. Lancheros. 2015b. “Investment Liberalisation, Technology Take-Off and Export Markets Entry: Does Foreign Ownership Structure Matter?.” Journal of Economic Behavior & Organization 116:254–269.10.1016/j.jebo.2015.04.008Search in Google Scholar

Girma, S., and H. Görg. 2007. “Multinationals’ Productivity Advantage: Scale or Technology?.” Economic Inquiry 45 (2):350–362.10.1142/9789814749237_0001Search in Google Scholar

Gorodnichenko, Y., J. Svejnar, and K. Terrell. 2007. When Does FDI Have Positive Spillovers? Evidence from 17 Emerging Market Economies. London: Centre for Economic Policy Research.10.2139/ssrn.1025434Search in Google Scholar

Guadalupe, M., O. Kuzmina, and C. Thomas. 2012. “Innovation and Foreign Ownership.” American Economic Review 102 (7):3594–3627.10.3386/w16573Search in Google Scholar

Halpern, L., and B. Muraközy. 2007. “Does Distance Matter in Spillover?.” Economics of Transition 15 (4):781–805.10.1111/j.1468-0351.2007.00308.xSearch in Google Scholar

Harris, R., and C. Robinson. 2002. “The Effect of Foreign Acquisitions on Total Factor Productivity: Plant-Level Evidence from U.K. Manufacturing, 1987–1992.” Review of Economics and Statistics 84 (3):562–568.10.1162/003465302320259556Search in Google Scholar

Haskel, J.E., S.C. Pereira, and M.J. Slaughter. 2007. “Does Inward Foreign Direct Investment Boost the Productivity of Domestic Firms?.” Review of Economics and Statistics 89 (3):482–496.10.3386/w8724Search in Google Scholar

Hatani, F. 2009. “The Logic of Spillover Interception: The Impact of Global Supply Chains in China.” Journal of World Business 44 (2):158–166.10.1016/j.jwb.2008.05.005Search in Google Scholar

Javorcik, B.S. 2004a. “The Composition of Foreign Direct Investment and Protection of Intellectual Property Rights: Evidence from Transition Economies.” European Economic Review 48 (1):39–62.10.2139/ssrn.180128Search in Google Scholar

Javorcik, B.S. 2004b. “Does Foreign Direct Investment Increase the Productivity of Domestic Firms? in Search of Spillovers through Backward Linkages.” The American Economic Review 94 (3):605–627.10.1257/0002828041464605Search in Google Scholar

Javorcik, B.S. 2015. “Does FDI Bring Good Jobs to Host Countries?.” World Bank Research Observer 30 (1):74–94.10.1596/12132Search in Google Scholar

Kathuria, V. 2000. “Productivity Spillovers from Technology Transfer to Indian Manufacturing Firms.” Journal of International Development 12 (3):343–369.10.1002/(SICI)1099-1328(200004)12:3<343::AID-JID639>3.0.CO;2-RSearch in Google Scholar

Keller, W., and S.R. Yeaple. 2009. “Multinational Enterprises, International Trade, and Productivity Growth: Firm-Level Evidence from the United States.” Review of Economics and Statistics 91 (4):821–831.10.3386/w9504Search in Google Scholar

Kogut, B. 1991. “Country Capabilities and the Permeability of Borders.” Strategic Management Journal 12 (S1):33–47.10.1002/smj.4250120905Search in Google Scholar

Kogut, B., and U. Zander. 1993. “Knowledge of the Firm and the Evolutionary Theory of the Multinational Corporation.” Journal of International Business Studies 24 (4):625–645.10.1057/palgrave.jibs.8490248Search in Google Scholar

Kokko, A. 1994. “Technology, Market Characteristics, and Spillovers.” Journal of Development Economics 43 (2):279–293.10.1016/0304-3878(94)90008-6Search in Google Scholar

Konings, J. 2001. “The Effects of Foreign Direct Investment on Domestic Firms.” Economics of Transition 9 (3):619–633.10.1111/1468-0351.00091Search in Google Scholar

Lall, S. 1992. “Technological Capabilities and Industrialization.” World Development 20 (2):165–186.10.1016/0305-750X(92)90097-FSearch in Google Scholar

Markusen, J.R., and A.J. Venables. 1999. “Foreign Direct Investment as a Catalyst for Industrial Development.” European Economic Review 43 (2):335–356.10.3386/w6241Search in Google Scholar

Monastiriotis, V., and R. Alegria. 2011. “Origin of FDI and Intra-Industry Domestic Spillovers: The Case of Greek and European FDI in Bulgaria.” Review of Development Economics 15 (2):326–339.10.1111/j.1467-9361.2011.00611.xSearch in Google Scholar

Nelson, R.R., and S.G. Winter. 2009. An Evolutionary Theory of Economic Change. Cambridge, Massachusetts, USA: Harvard University Press.Search in Google Scholar

Nicolini, M., and L. Resmini. 2010. “FDI Spillovers in New EU Member States.” Economics of Transition 18 (3):487–511.10.1111/j.1468-0351.2009.00379.xSearch in Google Scholar

Onaran, Ö., and E. Stockhammer. 2008. “The Effect of FDI and Foreign Trade on Wages in the Central and Eastern European Countries in the Post-Transition Era: A Sectoral Analysis for the Manufacturing Industry.” Structural Change and Economic Dynamics 19 (1):66–80.10.1016/j.strueco.2007.11.003Search in Google Scholar

Porter, M.E. 1990. Competitive Advantage of Nations. New York, USA: Free Press.10.1007/978-1-349-11336-1Search in Google Scholar

Stake, R.E. 1995. The Art of Case Study Research. Thousand Oaks, CA, USA: Sage Publications.Search in Google Scholar

Published Online: 2017-4-22
Published in Print: 2017-6-27

© 2017 Walter de Gruyter GmbH, Berlin/Boston

Downloaded on 6.1.2026 from https://www.degruyterbrill.com/document/doi/10.1515/ngs-2017-0010/pdf
Scroll to top button