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Does foreign ownership matter?

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  • Ksenia Yudaeva
  • Konstantin Kozlov
  • Natalia Melentieva
  • Natalia Ponomareva

Abstract

The paper both compares productivity of Russian firms that have foreign direct investments with productivity of fully domestically owned firms and analyses spillovers from foreign‐owned firms to domestic firms. Foreign firms are found to be more productive than domestic ones, but productivity of the former is negatively affected by slow progress of reforms in the regions where they operate. It is also found that there are positive spillovers from foreign‐owned firms to domestic firms in the same industry, but negative effects on domestic firms that are vertically related to foreign‐owned firms. The stock of human capital in regions where foreign firms operate is one of the factors which help domestic firms to benefit from the entry of foreign firms.

Suggested Citation

  • Ksenia Yudaeva & Konstantin Kozlov & Natalia Melentieva & Natalia Ponomareva, 2003. "Does foreign ownership matter?," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 11(3), pages 383-409, September.
    • Handle: RePEc:bla:etrans:v:11:y:2003:i:3:p:383-409
    DOI: 10.1111/1468-0351.00157
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    References listed on IDEAS

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