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The Export Performance of MNE Affiliates in Polish manufacturing: 1993-2002: A Study on Knowledge Mandate

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  • Jørgen Ulff-Møller Nielsen, Denmark
  • Konrad Pawlik, Presidential Office, Poland
Using a unique database containing trade (export and import) and industry variables (wages, employment, foreign capital share, investments, sales, etc.) of foreign affiliates in the Polish manufacturing industry for the years 1993-2002, this paper analyses the determinants of the export performance of the foreign affiliates. The results from panel estimations show that the export intensity of the affiliates has increased every year since 1994. The lowest level of export performance was recorded in science-based industries. Import intensity, labour intensity, wage level, scale economies and foreign control are significant and positively associated to export performance, while investment activity is negatively related to the export performance of the affiliates. On the assumption that some industry variables are proxies for technology transfer, the results show that the increasing export orientation of foreign affiliates is the result of increasing international sourcing, implying that the foreign affiliates hold an advanced role in MNEs, which translates its "knowledge mandate" into more trade (imports and exports) in interdependence with other foreign affiliates. High wages to foreign affiliate employees (indicating improvements in absorptive capacity) are related to high export performance. Besides, given international business research (Kogut and Zander, 1993), the positive association between foreign ownership and export intensity suggests that transfer of tacit knowledge is positively related to affiliate production in exports. Results for investments activity (as an indicator for investments production technology) indicate that the high level of export performance of foreign affiliates in a transition economy does not reflect a large flow of technologies embodied in machinery and software.
Original languageEnglish
Title of host publicationAIB 2006 Proceedings - From the Silk Road to Global Networks : Harnessing the Power of People in International Business
EditorsMary Ann Von Glinow, Tunga Kiyak
PublisherAcademy of International Business
Publication year2006
Publication statusPublished - 2006
EventAcademy of International Business, 48th Annual Meeting - Beijing, China
Duration: 23 Jun 200626 Jun 2006
Conference number: 48


ConferenceAcademy of International Business, 48th Annual Meeting

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