Economics at your fingertips  

Not All That Glitters

Jan Hagemejer and Joanna Tyrowicz ()

Eastern European Economics, 2011, vol. 49, issue 3, 89-111

Abstract: >p>Although foreign subsidiaries usually perform better than the average of the hosting economies, empirical literature has also established that the selection effect is statistically significant. In this paper we attempt to evaluate its economic relevance, using a unique data set of annual financial reports by all medium and large Polish enterprises over the period 1995-2007. We match firms privatized with the use of foreign direct investment (FDI) to a control group of nonprivatized state-owned companies in order to disentangle the effect of self-selection and FDI entry.>/p>>p>Evidence suggests that although FDI enters more frequently into companies that already participate in the international trading networks, roughly half the export intensity differential may be attributed to the entry of FDI. On the other hand, selection effects seem to dominate as far as efficiency is concerned, whereas only toward the end of the sample may the positive effect of FDI on profitability be confirmed.>/p>

Date: 2011
References: Add references at CitEc
Citations: View citations in EconPapers (10) Track citations by RSS feed

Downloads: (external link) (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Not all that glitters. The direct effects of privatization through foreign investment (2010) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from

Access Statistics for this article

More articles in Eastern European Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().

Page updated 2021-02-19
Handle: RePEc:mes:eaeuec:v:49:y:2011:i:3:p:89-111