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Foreign-Versus Domestic-Owned firms in the Predicament ‘Cui bono?’

Foreign-Versus Domestic-Owned firms in the Predicament ‘Cui bono?’ AbstractBackground: 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. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Business Systems Research Journal de Gruyter

Foreign-Versus Domestic-Owned firms in the Predicament ‘Cui bono?’

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Publisher
de Gruyter
Copyright
© 2019 Mico Apostolov et al., published by Sciendo
ISSN
1847-9375
eISSN
1847-9375
DOI
10.2478/bsrj-2019-015
Publisher site
See Article on Publisher Site

Abstract

AbstractBackground: 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.

Journal

Business Systems Research Journalde Gruyter

Published: Sep 1, 2019

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