Foreign-versus domestic-owned firms in the predicament 'Cui bono?'

Abstract

Background: This article examines the productivity of domestic firms in the case of the foreign ownership.

Objectives: Foreign direct investments affect the competitive competences of domestic firms; thus, the objective is to see the way foreign ownership drives the growth of domestic firms.

Methods/Approach: The study uses standard models to analyse productivity; they are applied to data sets of Macedonia, a Southeast European economy, and it is concluded that foreign ownership has a major role in domestic firms’ restructuring processes increasing their productivity.

Results: Surely, the results support the principal notion that the augmented presence of foreign firms is to influence the restructuring and business activity of domestic companies positively.

Conclusions: Our analysis verifies that foreign ownership has influenced the overall economy and particularly domestic-owned firms with the constant increase in employment and especially direct export.

Document Type

Journal Article

Date of Publication

2019

Publication Title

Business Systems Research Journal

Publisher

Sciendo

School

School of Business and Law

RAS ID

29592

Comments

Apostolov, M., & Scagnelli, S. D. (2019). Foreign-versus domestic-owned firms in the predicament 'Cui bono?'. Business Systems Research Journal, 10(2), 18-36. Available here

Copyright

free_to_read

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Link to publisher version (DOI)

10.2478/bsrj-2019-015

Link to publisher version (DOI)

10.2478/bsrj-2019-015