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The Impact of Internationalised Production on the Domestic Growth of Firms

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  • Michael Pfaffermayr

Abstract

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.

Suggested Citation

  • Michael Pfaffermayr, 2000. "The Impact of Internationalised Production on the Domestic Growth of Firms," Austrian Economic Quarterly, WIFO, vol. 5(1), pages 25-33, February.
    • Handle: RePEc:wfo:wquart:y:2000:i:1:p:25-33
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    References listed on IDEAS

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