Abstract
This paper investigates the role of different types of firms in related and unrelated diversification in regions, in particular the extent to which foreign-owned firms induce structural change in the manufacturing capability base of 67 Hungarian regions between 2000 and 2009. Doing so, it connects more tightly the literatures of evolutionary economic geography and international business. The results indicate that foreign-owned firms deviate more from the region's average capability match than domestic-owned firms. However, this deviation is larger on the short run than in the long run, and more pronounced in peripheral regions and in the capital region.
| Original language | English |
|---|---|
| Pages (from-to) | 1603-1613 |
| Number of pages | 11 |
| Journal | Regional Studies |
| Volume | 53 |
| Issue number | 11 |
| DOIs | |
| Publication status | Published - 2 Nov 2019 |
Funding
Zolt?n Elekes acknowledges the financial support of the New National Excellence Program of the Ministry of Human Capacities of the Hungarian Government [grant number UNKP-17-3-III-SZTE-10]. The work of Bal?zs Lengyel was funded by the National Research, Development and Innovation Office [grant number KH 130502]. The authors thank Matte Hartog, Frank Neffke, Simona Iammarino and Andr?s Rodr?guez-Pose for helpful suggestions. They acknowledge the assistance of members of the Economics of Networks Unit and the Data Bank of Institute of Economics of the Hungarian Academy of Sciences in creating the skill-relatedness matrix. An earlier working paper version of this study was made available as part of the Papers in Evolutionary Economic Geography series (No. 18.12) of the Faculty of Geosciences, Utrecht University.
Keywords
- evolutionary economic geography
- foreign-owned firms
- international business studies
- multinational enterprises (MNEs)
- related diversification
- unrelated diversification