The Impact of Internationalised Production on the Domestic Growth of Firms
Based on data from the WIFO Investment Surveys, this paper analyses the relationship between a firm's foreign production and its growth at its domestic location. Firms with a high share of foreign production are more export-oriented than the average company. They have achieved a critical minimum size and are mainly active in technology-intensive industries. Internationalised firms tend to rely on a strategy which is built on both exports and foreign production. The econometric analysis confirms that larger firms on average grow more slowly but that internationalised firms, despite their above-average size, maintain and sometimes even expand their growth potential at home.
Volume (Year): 5 (2000)
Issue (Month): 1 (February)
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