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Empirical Evidence on Foreign Ownership and Productivity Growth

  • Sourafel Girma
  • Steve Thompson
  • Peter Wright

Abstract

It has frequently been noted that foreign owned firms appear to have higher levels of productivity than their domestic counterparts. The most common explanation for such a differential is that multinational affiliates enjoy firm-specific proprietary assets, which may be techno-logical or may be intangible factors such as organisational or brand name advantages, which gives the firm a productivity advantage over its domestic rivals. Indeed, the dominant ‘internalisation theory’ primarily considers the multinational firm as a means to transfer firm-specific pro-prietary assets whilst avoiding the costs associated with international transactions.1

Keywords

Foreign Direct Investment Labour Productivity Productivity Growth Total Factor Productivity Foreign Firm 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Sourafel Girma, Steve Thompson and Peter Wright 2005

Authors and Affiliations

  • Sourafel Girma
  • Steve Thompson
  • Peter Wright

There are no affiliations available

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