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Are foreign owned firms more productive? Evidence from Swedish firm data

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  • Karpaty, Patrik

    (Department of Business, Economics, Statistics and Informatics)

Abstract

This paper analyzes the difference between foreign and domestic ownership of firms with respect to productivity. The analysis is performed using a panel of firm data from Statis- tics Sweden, covering the entire manufacturing sector in the 1990:s. First we show that, other things equal, foreign-owned firms have higher labor productivity as well as total factor productivity than domestic firms. We also find that Swedish multinational firms are as productive as foreign-owned firms. Then we show that the rate of growth in productivity is higher in foreign-owned firms. We find no evidence for reverse causality.

Suggested Citation

  • Karpaty, Patrik, 2004. "Are foreign owned firms more productive? Evidence from Swedish firm data," Working Papers 2004:6, Örebro University, School of Business.
    • Handle: RePEc:hhs:oruesi:2004_006
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    Cited by:

    1. Bandick, Roger, 2004. "Do Workers Benefit from Foreign Ownership? Evidence from Swedish manufacturing," Working Paper Series 201, Trade Union Institute for Economic Research.
    2. Adriana Peluffo, 2015. "Foreign Direct Investment, Productivity, Demand for Skilled Labour and Wage Inequality: An Analysis of Uruguay," The World Economy, Wiley Blackwell, vol. 38(6), pages 962-983, June.
    3. Bishwanath Goldar & Karishma Banga, 2018. "Country Origin of Foreign Direct Investment in Indi an Manufacturing and Its Impact on Productivity of Domestic Firms," Working Papers id:12730, eSocialSciences.
    4. Deepika Srivastava, 2022. "Impact of foreign ownership on firm’s performance: a study of Indian manufacturing industry," Indian Economic Review, Springer, vol. 57(2), pages 393-419, December.

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    More about this item

    Keywords

    Foreign ownership; productivity;

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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