Javorcik, Beata Smarzynska

Oxford University
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International Trade; Foreign Direct Investment
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Last updated February 1, 2023
Beata Javorcik is Professor of International Economics at the University of Oxford and Research Affiliate at the Centre for Economic Policy Research in London. She specializes in international trade and economic development. Prior to coming to Oxford, she worked for eight years at the World Bank in Washington DC where she was involved in research activities, lending operations and provision of policy advice to developing countries in Central and Eastern Europe, Latin America and Asia. Her research interests focus on determinants and consequences of inflows of foreign direct investment, links between exporting and firm performance, and tariff evasion. Her work has been published in economic journals such as the American Economic Review, Review of Economics and Statistics, European Economic Review, Economic Journal, Journal of International Economics and Journal of Development Economics. She holds a Ph.D. in Economics from Yale University and a B.A. from the University of Rochester.  

Publication Search Results

Now showing 1 - 7 of 7
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    Policies Facilitating Firm Adjustment to Globalization
    (World Bank, Washington, D.C., 2004-11) Hoekman, Bernard ; Javorcik, Beata Smarzynska
    The authors focus on policies facilitating firm adjustment to globalization. They briefly review the effects of trade and investment liberalization on firms, focusing on within-industry effects. They postulate that governments' role in supporting the process is to (1) ensure that firms face "right" incentives to adjust, and (2) intervene in areas where market failures are present. Their main message is that while many policies could be adopted to address market failures, they need to be carefully designed and implemented in a stable macroeconomic environment. An institutional infrastructure that supports the functioning of modern markets is most important. Proactive support policies of whatever stripe should be subject to cost-benefit analysis, based on the existence of an identified market failure, and monitored for performance and cost effectiveness. Transparency and accountability are critical in ensuring that interventions accomplish their intended objectives rather than being vehicles for rent seeking.
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    Does It Matter Where You Come From? Vertical Spillovers from Foreign Direct Investment and the Nationality of Investors
    (World Bank, Washington, D.C., 2004-11) Javorcik, Beata Smarzynska ; Saggi, Kamal ; Spatareanu, Mariana
    The authors use a firm-level panel data set from Romania to examine whether the nationality of foreign investors affects the degree of vertical spillovers from foreign direct investment. Investors' country of origin may matter for spillovers to domestic producers in upstream sectors (supplying intermediate inputs) in two ways. First, the share of intermediate inputs sourced by multinationals from a host country is likely to increase with the distance between the host and the source economy. Second, the sourcing pattern is likely to be affected by preferential trade agreements that cover some but not other source economies. In this case, the Association Agreement signed between Romania and the European Union (EU) implies that inputs sourced from the EU are subject to a lower tariff than inputs sourced from America or Asia. Moreover, while for European investors intermediate inputs sourced from home country suppliers comply with the rules of origin and thus can be exported to the EU on preferential terms, this would not be the case for home country suppliers of American or Asian multinationals. Therefore, one would expect that American and Asian investors source more from Romania than EU investors and thus present greater potential for vertical spillovers. The empirical analysis produces evidence in support of the authors' hypothesis. They find a positive association between the presence of American and Asian companies in downstream sectors and the productivity of Romanian firms in the supplying industries. Further, the productivity of Romanian firms in the supplying sectors is negatively correlated with operations of European investors in downstream sectors. The differences between the effects associated with investors of different origin are statistically significant.
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    To Share or Not to Share : Does Local Participation Matter for Spillovers from Foreign Direct Investment?
    (World Bank, Washington, DC, 2003-08) Javorcik, Beata Smarzynska ; Spatareanu, Mariana
    This paper examines whether the degree of spillovers from foreign direct investment is affected by the foreign ownership share in investment projects. The analysis, based on an unbalanced panel of Romanian firms from 1998-2000, provides evidence consistent with positive intra-sectoral spillovers resulting from fully-owned foreign affiliates but not from projects with joint domestic and foreign ownership. This finding is consistent with literature suggesting that foreign investors tend to put more resources into technology transfer to their wholly-owned projects than to those owned partially. The data also indicate that the presence of partially foreign-owned projects is correlated with higher productivity of domestic firms in upstream industries, suggesting that domestic suppliers benefit from contacts with multinational customers. But the opposite is true for fully-owned foreign affiliates, which appear to have a negative effect on domestic firms in upstream industries. These results are consistent with the observation that foreign investors entering a host country through greenfield projects are less likely to source locally than those engaged in joint ventures or partial acquisitions. They are also in line with the evidence suggesting that fully-owned foreign subsidiaries use newer or more sophisticated technologies than jointly-owned investment projects, and thus may have higher requirements which only a few, if any, domestic suppliers are able to meet.
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    Developing Economies and International Investors : Do Investment Promotion Agencies Bring them Together?
    (World Bank, Washington, DC, 2007-08) Harding, Torfinn ; Javorcik, Beata Smarzynska
    Many countries spend significant resources on investment promotion agencies in the hope of attracting inflows of foreign direct investment. Despite the importance of this question for public policy choices, little is known about the effectiveness of investment promotion efforts. This study uses newly collected data on national investment promotion agencies in 109 countries to examine the effects of investment promotion on foreign direct investment inflows. The empirical analysis follows two approaches. First, it tests whether sectors explicitly targeted by investment promotion agencies receive more foreign direct investment in the post-targeting period relative to the pre-targeting period and non-targeted sectors. Second, it examines whether the existence of an investment promotion agency is correlated with higher foreign direct investment inflows. Results from both approaches point to the same conclusion. Investment promotion efforts appear to increase foreign direct investment inflows to developing countries. Moreover, agency characteristics, such as the agency's legal status and reporting structure, affect the effectiveness of investment promotion. There is also evidence of diversion of foreign direct investment due to investment incentives offered by other countries in the same geographic region.
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    Gifted Kids or Pushy Parents? Foreign Acquisitions and Plant Performance in Indonesia
    (World Bank, Washington, DC, 2005-05) Arnold, Jens Matthias ; Javorcik, Beata Smarzynska
    This paper uses micro data from the Indonesian Census of Manufacturing to analyze the causal relationship between foreign ownership and plant productivity. To control for the possible endogeneity of the FDI decision, the difference in differences approach is combined with a matching technique. An advantage of this novel method is the ability to follow the timing of the observed changes in productivity and other aspects of plant performance. The results suggest that foreign ownership leads to significant productivity improvements in the acquired plants. The improvements become visible in the acquisition year and continue in the subsequent periods. After three years, the acquired plants outperform the control group in terms of productivity by 34 percentage points. The data also suggest that the rise in productivity is a result of restructuring, as acquired plants increase their investment outlays, employment, and wages. Foreign ownership also appears to enhance the integration of plants into the global economy through increased exports and imports.
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    Trade Costs and Location of Foreign Firms in China
    (World Bank, Washington, DC, 2005-04) Amiti, Mary ; Javorcik, Beata Smarzynska
    The authors examine the determinants of entry by foreign firms using information on 515 Chinese industries at the provincial level during 1998-2001. The analysis, rooted in the new economic geography, focuses on market and supplier access within and outside the province of entry, as well as production and trade costs. The results indicate that market and supplier access are the most important factors affecting foreign entry. Access to markets and suppliers in the province of entry matters more than access to the rest of China, which is consistent with market fragmentation due to underdeveloped transport infrastructure and informal trade barriers.
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    Global Integration and Technology Transfer
    (Washington, DC: World Bank and Palgrave Macmillan, 2006) Hoekman, Bernard ; Javorcik, Beata Smarzynska
    This volume presents a rich set of analyses exploring how trade and foreign direct investment (FDI) can help increase economic growth by allowing firms to tap into and benefit from the global pool of knowledge. The chapters demonstrate that both obtaining access to foreign markets and opening their own economies to trade and FDI are crucial to promoting economic growth in developing countries, because they stimulate international technology diffusion. The volume also identifies government policies that can facilitate technology transfer and its absorption in the developing world.