Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/63666
Authors: 
Maliranta, Mika
Nurmi, Satu
Year of Publication: 
2007
Series/Report no.: 
ETLA Discussion Papers, The Research Institute of the Finnish Economy (ETLA) 1114
Abstract: 
This paper studies the effect of foreign-owned companies (FOCs) in the region on establishment survival and growth in the Finnish business sector. We analyze whether the presence of the FOCs has asymmetric effects among the local businesses. Foreign presence in the region is measured in a novel way by using the regional links between establishments and their workers in the local labour markets. Evidence for small service establishments suggests that the presence of the FOCs contributes to aggregate productivity by cleansing inefficient units. The FOCs do not seem to stimulate productivity-enhancing restructuring among large, manufacturing or continuing establishments.
Subjects: 
Foreign ownership, local labour markets, survival, growth, company efficiency, selection, reallocation
JEL: 
F23
J23
R11
R23
Document Type: 
Working Paper

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