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otive ponents sector and, to a lesser extent, in truck, bus and tractor production. This chapter also illustrates how the changing governmental policies towards FDI strongly influenced FDI inflows in the country and affected the Czech automotive ponents sector in the 1990s. The decision to form a particular JV was made by enterprises and had to be approved by the government, which also had to approve all greenfield investments. As in Chap. 5 the information presented in this chapter is based upon indepth interviews conducted with chief executive officers (CEOs) and top managers of 20 car ponent suppliers in Czechia in 2021 and 2021. While only nine of these suppliers were fully or partially foreignowned at the time of the interview, the top managers of Czechowned suppliers provided important insights and assessments of foreignowned panies because four of them formed JVs with foreign partners that involved parts of their panies (Table in Chap. 5).4 Most of the remaining panies interviewed have seriously considered forming JVs with foreign partners in the past or at the time of the interview and undertook negotiations with potential foreign The chapter also draws on interviews conducted by the author at the Czech Ministry of Industry and Trade and ?koda Auto in 1996 and at ?koda Auto, Tatra, DaewooAvia and Karosa vehicle manufacturers in 1999 and interviews at 14 Czechbased ponent suppliers and ?koda Auto in 2021. While this type of research cannot and does not claim to be a fully representative sample of the Czech automotive industry as a whole and its results therefore cannot be easily generalized, I believe that interviews with key actors represented by top managers of selected panies provide important insights into the actual processes of enterprise privatization and transformation related to FDI. As such, it plements the empirical studies of enterprise restructuring and effects of FDI at the enterprise level. The chapter begins with a discussion of changing governmental policies toward FDI and its effects on privatization of automotive ponent producers in the 1990s. Next is an analysis of immediate FDI effects at the level of individual enterprises. In particular, the issues of disciplining labor and the contested nature of enterprise restructuring are discussed. I then consider advantages of foreign ownership for Czech enterprises and I also provide examples of failed cooperation between domestic producers and foreign partners in the Czech motor industry. Finally, I briefly investigate Governmental Policies, FDI and Privatization General governmental economic policies and specific policies towards FDI play an important role in attracting FDI to a particular country. They are sometimes considered to be the most important factor affecting FDI inflows (. Lall 1996:425). The attitude of the Czech government toward FDI has undergone considerable changes since 1990. Three stages could be distinguished: the period before the 1992 parliamentary elections of governmental incentives to selected foreign investors。nek 2021a, 2021b) and that FDI does not necessarily lead to automatic economic success in the foreign invested enterprises (FIEs – joint ventures and foreignowned panies). Indeed, the research on FDI in CEE points towards a large diversity of FIEs in all possible respects and, consequently, to the need to better understand this diversity as well as the overall economic effects of FDI in CEE countries (Szanyi 2021:74). Two t