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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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    References listed on IDEAS

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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. 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.
    3. 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.
    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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