| Publication |
2011.
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| Summary/Abstract |
This study offers a computable general equilibrium methodology to analyse the involvement of multinationals in the motor vehicles sector in the post-communist Czech Republic. This allows estimating not only the economy-wide impact, but also the sectoral adjustments in a unified framework. The real levels of foreign direct investment received in the motor vehicles sector seem to produce only limited forward and backward linkages. Therefore, gross domestic product (GDP) and welfare increase slightly-and can even fall-after a certain degree of capital accumulation because saturation effects arise. Profit repatriation considerably exacerbates the negative effect on GDP and welfare.
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