Title: How do western firms respond to the opening of Central and Eastern Europe? Evidence from a small open economy--Belgium
Authors: Janssens, S ×
Konings, Joep #
Issue Date: 1999
Series Title: Tijdschrift voor Economie en Management vol:44 issue:1 pages:51-68
Abstract: In this paper we study in which Western companies deal with increased globalisation and a particular with the opening of Central and Eastern Europe to the Western market. To this end we report the results of a survey with Belgian companies that invested and/or exported to Central and Eastern Europe. We find that delocalisation of production facilities to Central and Eastern Europe is rather limited, although a substantial number of Western companies have plants of contractual arrangements with companies in the region. The exploration of new markets and the achievement of first-mover advantages are important reasons for investment while cheap labor is of lesser importance. Globalisation is a real phenomenon. Between 1986-199, 51% of the companies in the sample reported an increase in foreign competition: between 1990-1995 this raised to 81%. This is not bad for economic performance. Using firm level panel data we estimate a positive effect of globalisation on the demand for labor
ISSN: 0772-7674
Publication status: published
KU Leuven publication type: AT
Appears in Collections:Research Center of Monetary and Information Economics, Leuven
× corresponding author
# (joint) last author

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