European Business Schools Librarian's Group

Working Papers,
Vienna University of Economics and Business Research Group: Growth and Employment in Europe: Sustainability and Competitiveness

Multinational Enterprises and Their Domestic Counterparts: Past Research, Current Issues and Future Directions

Christian Bellak ()
Additional contact information
Christian Bellak: Department of Economics, Vienna University of Economics & B.A.

Abstract: This paper reviews and summarises the results of selected empirical studies on performance gaps between multinational enterprises and their domestic counterparts. Performance gaps arise in such fields as productivity, profitability, wages, skills, factor intensity and growth. Of central interest is the question to what extent is foreign ownership an explanatory factor of performance gaps? Empirical evidence supports the existence of performance gaps between foreign and domestic firms, yet foreign ownership is a much less important explanatory factor than normally assumed. Structural factors like industry, size and multi-nationality per se are more important. It is argued that such results are broadly consistent with those derived in the literatures on ownership change, on foreign entry and on spillovers. The concluding section discusses the normative issue whether there is a case for investment promotion policies to discriminate between firms on the basis of performance gaps by ownership.

Keywords: multinational enterprises; foreign ownership, domestic firms, Foreign Direct Investment; performance gaps; firm performance

JEL-codes: F2; L1 November 2001

Note: PDF Document

Full text files

gee!wp18.pdf PDF-file 

Download statistics

Report problems with accessing this service to Sune Karlsson ().

This page generated on 2018-02-15 23:08:22.