Original scientific paper
https://doi.org/10.2478/bsrj-2019-015
Foreign- Versus Domestic-Owned firms in the Predicament ‘Cui bono?’
Mico Apostolov
orcid.org/0000-0003-3697-1346
; Goce Delchev University, Stip, Macedonia & Università degli Studi di Torino, Torino, Italia
Simone Domenico Scagnelli
; Edith Cowan University, Australia & Università degli Studi di Torino, Torino, Italia
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.
Keywords
foreign firms; domestic firms; productivity
Hrčak ID:
224557
URI
Publication date:
1.9.2019.
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