The spillover effect of foreign direct investment - the case of Slovak beer and malt production sector

Abstract

The paper deals with the FDI spillover effects in production of beer and malt in Slovakia. Malt producers have a dominant position in the market. The use of the almost monopsonistic power of malt producers is constrained the by low asset specificity of primary producers of barley, other outlets for the disposal of barley (export), and demand for high quality of malt from malt producers. Because of high dependence of malt producers for high quality and reliable deliveries of barley, malt producers provide a significant assistance of primary farmers.