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Empirical Evidence on Foreign Ownership and Productivity Growth

In: Globalisation and Productivity Growth

Author

Listed:
  • Sourafel Girma
  • Steve Thompson
  • Peter Wright

Abstract

It has frequently been noted that foreign owned firms appear to have higher levels of productivity than their domestic counterparts. The most common explanation for such a differential is that multinational affiliates enjoy firm-specific proprietary assets, which may be techno-logical or may be intangible factors such as organisational or brand name advantages, which gives the firm a productivity advantage over its domestic rivals. Indeed, the dominant ‘internalisation theory’ primarily considers the multinational firm as a means to transfer firm-specific pro-prietary assets whilst avoiding the costs associated with international transactions.1

Suggested Citation

  • Sourafel Girma & Steve Thompson & Peter Wright, 2005. "Empirical Evidence on Foreign Ownership and Productivity Growth," Palgrave Macmillan Books, in: Holger Görg & David Greenaway & Richard Kneller (ed.), Globalisation and Productivity Growth, chapter 5, pages 79-91, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-52322-7_5
    DOI: 10.1057/9780230523227_5
    as

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