Paper #617

Title:

Foreign ownership and productivity dynamics

Author:

Koen de Backer

Date:

May 2002

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

JEL codes:

F23, L10, M20

Area of Research:

Macroeconomics and International Economics

Published in:

Economics letters, Vol. 79, Issue 2, 177-183, May 2003

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