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Patterns of Entry, Post-Entry Growth and Survival: A Comparison Between Domestic and Foreign Owned Firms

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  • Pedro Portugal
  • José Mata

Abstract

This study compares the patters of entry, survival and growth of domestic and foreign owned firms. We show that the post-entry behavior of foreign owned firms is quite different from that of their domestic counterparts. Among foreign entrants, we were able to distinguish between those which proceed by creating a new firm and those that acquire an already existing business. Our evidence reveals that the choice of the mode of entry in foreign markets exerts an impact upon the performance of firms that persist long after the moment of entry. As a consequence, our work clearly indicates that there is much to be gained in the understanding of the process of entry in foreign markets by studying the behavior of entrants over their first years in these markets.

Suggested Citation

  • Pedro Portugal & José Mata, 2002. "Patterns of Entry, Post-Entry Growth and Survival: A Comparison Between Domestic and Foreign Owned Firms," Working Papers w200204, Banco de Portugal, Economics and Research Department.
    • Handle: RePEc:ptu:wpaper:w200204
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