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Foreign ownership and productivity dynamics

Koen de Backer

Economics Working Papers from Department of Economics and Business, Universitat Pompeu Fabra

Abstract: In analyzing the distinctive contribution of foreign subsidiaries and domestic firms to productivity growth in aggregate Belgian manufacturing, this paper shows that foreign ownership is an important source of firm heterogeneity affecting productivity dynamics. Foreign firms have contributed disproportionately large to aggregate productivity growth, but more importantly reallocation processes differ significantly between the groups of foreign subsidiaries and domestic firms.

Keywords: Multinational firms; productivity; firm heterogeneity (search for similar items in EconPapers)
JEL-codes: F23 L10 M20 (search for similar items in EconPapers)
Date: 2002-05
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