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Why Foreign-Owned Firms are Different: A Conceptual Framework and Empirical Evidence for Austria

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  • Pfaffermayr, Michael
  • Bellak, Christian

Abstract

This study examines performance gaps among foreign-owned and domestically-owned Austrian firms. In line with earlier findings our results suggest that the positive effects of participating in a foreign multinational's network can mainly be found in productivity and profitability. A further distinction between purely national firms and multinational enterprises (MNEs) reveals that both gaps derive from gains of MNE networks rather than from ownership per se. Regardless of ownership, MNEs are more similar than MNEs and purely national firms. Gaps concerning the investment propensity and growth are primarily explained by firm characteristics rather than foreign ownership. There is no evidence of an additional bonus resulting from closer cultural proximity of German-owned firms. Diese Studie untersucht Unterschiede in der Performance auslandskontrollierter und heimischer Unternehmen in Österreich. Die Ergebnisse bestätigen insofern frühere Untersuchungen, als die wichtigsten Vorteile auslandskontrollierter Unternehmen in der überlegenen Produktivität und Rentabilität gesehen werden. Bei Unterscheidung der österreichischen Firmen in rein nationale und multinationale Firmen (MNE) zeigt sich, daß österreichische und ausländische MNE einander ähnlicher sind als die österreichischen MNE und rein nationale Firmen. Die aufgezeigten Performance- Unterschiede resultieren eher aus der Einbindung in MNE-Netzwerke als aus dem Auslandseigentum an sich. Unterschiedliche Investitionsneigung und Wachstumsverläufe lassen sich primär durch unternehmensspezifische Faktoren und weniger durch das Auslandseigentum erklären. Es ergeben sich keine Anhaltspunkte für einen zusätzlichen Performance-Vorsprung deutscher Investoren aus deren kultureller Nähe zu Österreich.

Suggested Citation

  • Pfaffermayr, Michael & Bellak, Christian, 2000. "Why Foreign-Owned Firms are Different: A Conceptual Framework and Empirical Evidence for Austria," Discussion Paper Series 26372, Hamburg Institute of International Economics.
  • Handle: RePEc:ags:hwwadp:26372
    DOI: 10.22004/ag.econ.26372
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    File URL: http://ageconsearch.umn.edu/record/26372/files/dp000115.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Industrial Organization;

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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