Swedish Tillväxtanalys: “Foreign-owned (multinational) firms are more productive than domestic firms, and the differences in productivity are significant.”
November 06, 2017
According to a recent report by Swedish Tillväxtanalys “foreign-owned (multinational) firms are more productive than domestic firms, and the differences in productivity are significant. The productivity premium in foreign-owned firms is 31 percent, even when other factors that may affect productivity, such as share of skilled labour and firm size, are controlled for. An explanation for this is that foreign-owned firms have owner-specific assets that make them more productive, such as a unique product or production process, strong brands, a reputation for good quality, or access to international production and marketing networks.”