Title:	Impacts of selected nace industries´ foreign ownership on the czech economy
Authors:	Roubíčková, Michaela Heryán, Tomáš
Citation:	E+M. Ekonomie a Management = Economics and Management. 2014, č. 4, s. 58-69.
Issue Date:	2014
Publisher:	Technická univerzita v Liberci
Document type:	článek article
URI:	http://www.ekonomie-management.cz/download/1420548571_f99d/05_IMPACTS+OF+SELECTED+NACE+INDUSTRIES.pdf http://hdl.handle.net/11025/17582
ISSN:	1212-3609 (Print) 2336-5604 (Online)
Keywords:	zahraniční vlastnictví;domácí vlastnictví;přímé zahraniční investice;panelová regrese
Keywords in different language:	foreign ownership;domestic ownership;foreign direct investment;panel regression
Abstract in different language:	The aim of the current paper was to estimate whether the Czech companies’ equity increasing and returns on equity’s development have an impact on GDP’s development in selected Czech business sectors. Contribution of our study to foreign direct investment and firm performance the matters is using quarterly frequency data to examine relationship between foreign ownership and quarterly economic growth in selected NACE business sectors. Hanou‰ek et al. [9] argue that Foreign Direct Investments (FDI) have some several impacts at the Czech microeconomic level. We argue then, it could be interesting to compare domestic and foreign ownership with weighted GDP growth rate in the Czech Republic. If foreign equity in the country and rentability of foreign owned companies affect GDP more than rentability of domestic companies, foreign ownership is more efficient for the Czech economy. From our point of view, microeconomic data in pooled sample could influence macroeconomy of the country. It motivates recent study. We are estimating panel regression models with cross section weights. Our endogenous variable is weighted GDP growth rate in pooled data of all our selected business industries. Our exogenous variables are average equity growth rate and growth rate of return on equity (ROE), both in pooled sample of selected Czech industries. This study proved positive impacts of foreign ownership on GDP in the Czech Republic. Foreign-owned companies have a positive impact on GDP growth rate through both increase in equity and increase of ROE of Czech firms. In the case of domestic-owned firms the positive impact of ROE change was not demonstrated.
Rights:	© Technická univerzita v Liberci CC BY-NC 4.0
Appears in Collections:	Číslo 4 (2014) Číslo 4 (2014)

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