The Impact of Internationalised Production on the Domestic Growth of Firms

Michael Pfaffermayr

Austrian Economic Quarterly, 2000, vol. 5, issue 1, 25-33

Abstract: Based on data from the WIFO Investment Surveys, this paper analyses the relationship between a firm's foreign production and its growth at its domestic location. Firms with a high share of foreign production are more export-oriented than the average company. They have achieved a critical minimum size and are mainly active in technology-intensive industries. Internationalised firms tend to rely on a strategy which is built on both exports and foreign production. The econometric analysis confirms that larger firms on average grow more slowly but that internationalised firms, despite their above-average size, maintain and sometimes even expand their growth potential at home.

Keywords: The; Impact; of; Internationalised; Production; on; the; Domestic; Growth; of; Firms (search for similar items in EconPapers)
Date: 2000
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Persistent link: https://EconPapers.repec.org/RePEc:wfo:wquart:y:2000:i:1:p:25-33

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