Firm Performance and Foreign Direct Investment: Evidence from Transition Economies

Mahmut Yasar and Catherine Morrison Paul

Economics Bulletin, 2007, vol. 15, issue 21, 1-11

Abstract: Firm Performance and Foreign Direct Investment: Evidence from Transition Economies Mahmut Yasar, University of Texas at Arlington, and Catherine J. Morrison Paul, University of California, Davis* Abstract We evaluate the performance of foreign-owned versus domestic firms, and the spillover effects of industry foreign share for five transition economies, namely Poland, Moldova, Tajikistan, Uzbekistan, and the Kyrgyz Republic. We find higher productivity, capital intensity, export and import shares, employment, and wages for firms with foreign ownership. Further, we find that industry presence of foreign affiliates of multinational firms leads to performance improvements for domestic firms that is, spillovers from foreign firms benefit domestic firms in these transition economies.

Keywords: Eastern; Europe; and; Central; Asia (search for similar items in EconPapers)
JEL-codes: F1 O5 (search for similar items in EconPapers)
Date: 2007-10-10
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Citations: View citations in EconPapers (5)

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