 Does Multinationality Matter? Evidence from Swedish firm dataApplied Economics Quarterly (formerly: Konjunkturpolitik), 2006, vol. 52, issue 2, 101-122 Abstract: This paper highlights the importance of R&D, domestic multinationals and the distinction between greenfield and acquisition FDI with respect to productivity. The analysis is performed using a panel of firm data covering the entire Swedish manufacturing sector in the 1990’s. The analysis shows that, other things equal, foreign-owned firms have higher total factor productivity than domestic firms. The stock of firm-specific knowledge, measured by R&D, also emerges as important. Consistent with Dunning’s ownership-location-internalization (OLI) paradigm, the results suggest that there is no productivity differential between Swedish and foreign MNEs. So multinationality per se is more important than being foreign. Furthermore, it is shown that the mode of entry matters. Foreign greenfields in Sweden are more productive compared to both acquired firms and Swedish MNEs. Finally there is no evidence for reverse causality. Keywords: Foreign ownership; productivity; multinational firms; greenfield and acquisition FDI (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:aeq:aeqaeq:v52_y2006_i2_q2_p101-122 Ordering information: This journal article can be ordered from Access Statistics for this article Applied Economics Quarterly (formerly: Konjunkturpolitik) is currently edited by Ansgar Belke, Uwe Sunde and Winfried Koeniger More articles in Applied Economics Quarterly (formerly: Konjunkturpolitik) from Duncker & Humblot, Berlin |
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