Structural Changes During Adjustment: Heterogeneity Based on Firm Ownership
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The previous chapter explored selected variables in the cost and asset structures of firms based on differences with respect to size of firm. Another area of distinction is firm ownership (foreign/local), which, like firm size, has relevance in the access to and cost of credit to finance investment and working capital. It is argued that foreign firms, as a subgroup of actors in the private sector, are part of a global network that relies on intra-group sales, can have favoured access to banks both local and international, and can borrow internally from parents and affiliate companies (FitzGerald 1993).
KeywordsReal Exchange Rate Foreign Firm Real Interest Rate Average Wage Local Firm
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