Comparative Efficiencies of Foreign Firms and Local Firms in Iran

Parviz Asheghian
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Parviz Asheghian: St. Lawrence University

Journal of International Business Studies, 1982, vol. 13, issue 3, 113-120

Abstract: The controversial nature of the subject of foreign investment in recent years has called for more empirical research. One of the issues which have attracted the attention of scientists and policy markers is the question of efficiency of foreign firms versus local firms. This survey examines the comparative efficiencies of Iranian (IR) firms versus Iranian-American joint venture (IAJV) firms during the pre-revolutionary 1971–1976 period.To compare the relative performance of IR firms and IAJV firms, the study presents an interfirm efficiency comparison of 11 matched firms. The comparison is based on 3 indexes of efficiency—labor productivity, capital productivity, and total factor productivity.With minor exceptions the study concludes that IAJV firms have been more efficient than the IR firms' counterparts.© 1982 JIBS. Journal of International Business Studies (1982) 13, 113–120

Date: 1982
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