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

School

School of Business and Law

RAS ID

29592

Copyright

free_to_read

Publisher

Sciendo

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

Share

 
COinS
 

Link to publisher version (DOI)

10.2478/bsrj-2019-015