Does foreign presence stimulate creative destruction in local markets?

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ETLA Discussion Papers ; No. 1114

Classification and Topics

• Classification: Wirtschaft ; Multinational Firms; International Business ; Labor Demand ; Regional Economic Activity: Growth, Development, Environmental Issues, and Changes ; Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
• Subject: Foreign ownership, local labour markets, survival, growth, company efficiency, selection, reallocation ; Technischer Fortschritt ; Unternehmensentwicklung ; Arbeitsproduktivität ; Multinationales Unternehmen ; Regionaler Arbeitsmarkt ; Schätzung ; Finnland

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Maliranta, Mika ; Nurmi, Satu
• Event: Veröffentlichung
• (who): The Research Institute of the Finnish Economy (ETLA)
• (where): Helsinki
• (when): 2007

Further information

• Handle: http://hdl.handle.net/10419/63666
• Last update: 10.03.2025, 11:43 AM CET