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Efficiency and Ownership Structure – The Case of Poland

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  • Modén, Karl-Markus

    (Södertörn University College)

  • Norbäck, Pehr-Johan

    (Research Institute of Industrial Economics (IFN))

  • Persson, Lars

    (Research Institute of Industrial Economics (IFN))

Abstract

We examine the effects of foreign entry on productive efficiency during the Polish investment liberalization. The performance of foreign acquisitions is compared to foreign firms entering the market through greenfield entry, as well as domestic acquisitions of privatized firms, domestic greenfields and remaining state-owned (non-privatized) firms during the period 1995-2000. We find that foreign privatized firms have realized larger productivity gains than all types of domestic firms and that this is not due to higher price-cost margins, which is consistent with the idea that foreign firms bring in firm-specific knowledge. Foreign greenfields have the highest average labour productivity, while foreign privatizations show the largest productivity increase.

Suggested Citation

  • Modén, Karl-Markus & Norbäck, Pehr-Johan & Persson, Lars, 2007. "Efficiency and Ownership Structure – The Case of Poland," Working Paper Series 703, Research Institute of Industrial Economics.
    • Handle: RePEc:hhs:iuiwop:0703
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    Cited by:

    1. Ichiro IWASAKI & Satoshi MIZOBATA, 2018. "Post-Privatization Ownership And Firm Performance: A Large Meta-Analysis Of The Transition Literature," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 89(2), pages 263-322, June.
    2. Sichong Chen & Muhammad Imran Nazir & Shujahat Haider Hashmi & Ruqia Shaikh, 2019. "Bank Competition, Foreign Bank Entry, and Risk-Taking Behavior: Cross Country Evidence," JRFM, MDPI, vol. 12(3), pages 1-26, June.
    3. Karpaty, Patrik, 2004. "Are foreign owned firms more productive? Evidence from Swedish firm data," Working Papers 2004:6, Örebro University, School of Business.

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    More about this item

    Keywords

    Privatizations; M As; FDI; Foreign Ownership; Productivity;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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