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The Economic Performance of Foreign Affiliates in Canada

Author

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  • Steven Globerman
  • John C. Ries
  • Ilan Vertinsky

Abstract

This study compares the economic performance of foreign-owned and Canadian-owned establishments. The authors' results show that foreign affiliates have significantly higher value-added per worker and pay higher wages than do Canadian establishments but these differences vanish once they control for factors such as size and capital intensity. The authors find no significant differences in the performance of Canadian establishments owned by U.S., European, and Japanese firms. Their findings suggest that foreign investment may benefit Canada but do not provide support for country-specific investment promotion policies.

Suggested Citation

  • Steven Globerman & John C. Ries & Ilan Vertinsky, 1994. "The Economic Performance of Foreign Affiliates in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 27(1), pages 143-156, February.
  • Handle: RePEc:cje:issued:v:27:y:1994:i:1:p:143-56
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