MARKET INTERNATIONALIZATION IN THE REGIONAL CONTEXT
MARKET INTERNATIONALIZATION IN THE REGIONAL CONTEXT

Author(s): Sylvie Kotikova, RENATA ČUHLOVÁ
Subject(s): Business Economy / Management, Labor relations, Financial Markets, Human Resources in Economy
Published by: Masarykova univerzita nakladatelství
Keywords: cultural distance; foreign direct investment; foreign presence; productivity of labour; spillover effect;
Summary/Abstract: The paper aims to analyse the presence of foreign direct investments that were granted government support in form of investment incentive. The performed analysis consists of the national cultural distance measurement and the foreign presence calculations an indicator of spillover effects including also the intensity of transfer indicator that collectively depict the situation in the Pardubice region of the Czech Republic with the related effects. The research sample of 22 foreign investors is investigated during the period 2002-2014. The cultural distance is calculated by original and modified Kogut-Singh index based on Hofstede´s data of cultural dimensions. The lowest cultural distance from the Czech Republic as a host investment country was found with Spain and Italy. Contrary, the highest cultural distance was measured with Denmark. Findings of the foreign presence investigation report the ability of the Pardubice region to improve or absorb the benefits from localized companies at a steady pace from 2002 to 2011 and afterwards with decreasing trend for the last two examined years. Low level of the foreign presence suggests low potential for know-how spillover from FDI into domestic firms which is supported by values of the intensity of transfer of 0.4 in average.

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