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Joint foreign ownership and global value chains effects on productivity: A comparison of firms from Poland and Germany

Author

Listed:
  • Sabina Szymczak

    (Gdansk University of Technology, Gdansk, Poland)

  • Aleksandra Parteka

    (Gdansk University of Technology, Gdansk, Poland)

  • Joanna Wolszczak-Derlacz

    (Gdansk University of Technology, Gdansk, Poland)

Abstract

The study confronts the joint effects of foreign ownership and its involvement in global value chains (GVC) on the productivity performance of firms from a catching-up country (Poland) and a leader economy (Germany). Domestic owned firms are less productive than foreign ones, which is particularly true at low GVC participation levels. However, as GVC involvement increases, the foreign ownership productivity premium decreases, leading to productivity catching up between foreign and domestic owned firms. This mechanism is similar in Poland and Germany. However, in the leader country (Germany), domestically-owned firms' productivity performance is more stable along the GVC distribution.

Suggested Citation

  • Sabina Szymczak & Aleksandra Parteka & Joanna Wolszczak-Derlacz, 2022. "Joint foreign ownership and global value chains effects on productivity: A comparison of firms from Poland and Germany," GUT FME Working Paper Series A 69, Faculty of Management and Economics, Gdansk University of Technology.
    • Handle: RePEc:gdk:wpaper:69
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    References listed on IDEAS

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    More about this item

    Keywords

    GVC; FDI; productivity; firms; Amadeus database;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F61 - International Economics - - Economic Impacts of Globalization - - - Microeconomic Impacts
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis

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