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Are Migrant Firms Actually Different From Native Firms?

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  • A. Arrighetti
  • G. Foresti
  • S. Fumagalli
  • A. Lasagni

Abstract

A matched-pair analysis was performed to verify the existence or not of significant differences between native and migrant companies regarding firm-specific variables and the governance structure. Controlling for firm size, industry and geographical location, we found that proxy values for efficiency, capital intensity of production and services and profitability are not significantly different (or not lower) than those of native-owned small business. Evidence shows that previous studies concerning the diversity of immigrant-owned businesses are likely marked biased by methodological choices that did not take account of the concentration of these companies in “disadvantaged” firm size categories, industries or geographical locations.

Suggested Citation

  • A. Arrighetti & G. Foresti & S. Fumagalli & A. Lasagni, 2018. "Are Migrant Firms Actually Different From Native Firms?," Economics Department Working Papers 2018-EP05, Department of Economics, Parma University (Italy).
    • Handle: RePEc:par:dipeco:2018-ep05
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    More about this item

    Keywords

    ethnic firms; native firms; immigrant enterpreneurship; matched-pair analysis;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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