Julia Bachtrögler (p), Harald Oberhofer

Anna Gladysheva

See extended abstract

Zsolt Csáfordi (p), László Lőrincz, Balázs Lengyel, Károly Miklós Kiss

Julia Bachtrögler

Firms adjust their production to decreasing demand in crisis times, but technological proximity within the product portfolio might have an effect on strategies as well. In order to addresses the above issue we generate a co-occurrence network of industries, in which we exploit a sample of Hungarian firms that report volume and value of production on a product-level; and define the edge weight between sectors i and j as the number of firms producing the primary product in sector i and additional product in sector j. Then, we follow the revealed relatedness methodology in constructing the technological proximity network and use balance sheet information of the full universe of Hungarian firms to calculate industry-level indicators. We first look at the stability of the industry space network over the 2008-2012 period. Preliminary results suggest that the co-occurrence network is more stable than the technological proximity network over the crisis but. In the second step we look at the dynamics of firms product portfolios on the condition of technological proximity between primary and additional products. We find the larger technological proximity between the primary and additional products the less extent the firm will drop an additional product from the portfolio. However, the preserving effect of technological proximity decreases monotonically over the crisis. Finally, we demonstrate that technological proximity had a positive effect on net revenues realized in additional products.

Anna Gladysheva (p), Tatiana Ratnikova

Zsolt Csáfordi

The purpose of this work is to study the distribution of FDI in the Russian regions and the effects of FDI on foreign trade and manufacturing activities of the Russian regions in the selected industries. The analysis was made on the historical data of Rosstat regional statistics food industry from 2007 to 2013. The results of the study are expected to help in the search for answers to the following question: “Is it possible to attract foreign investors to the food industry in Russia to stimulate export while there is a decline in import, or, in other words, is there any reason for the success of the export-oriented import substitution policy in this industry?”. The analysis of dynamic regression equations and localization indices does not allow rejecting the efficiency of this policy. A high heterogeneity suggests the possibility of a successful import-substitution policy with future cooperation with foreign investors. The general conclusion is that the inflow of import of raw materials attracts FDI and the restriction on this inflow may reduce the received foreign investment. But a further reaction of export on FDI is questionable and the reduction in FDI will not cause problems for the increase in export of food production (however for capital regions the negative effect may exist).