<abstract xmlns="http://www.w3.org/1999/xhtml"><bold>Background:</bold> This article examines the productivity of domestic firms in the case of the foreign ownership.<bold>Objectives:</bold> 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.<bold>Methods/Approach:</bold> 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.<bold>Results:</bold> 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.<bold>Conclusions:</bold> 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.</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.

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

Business Systems Research Journal

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

{"article-title":"Foreign-Versus Domestic-Owned firms in the Predicament \u2018Cui bono?\u2019"}

Background: This article examines the productivity of domestic firms in the case of the foreign ownership.Objectives: Foreign direct investments affect the...

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

Published Online: Sep 16, 2019

Page range: 18 - 36

Received: Apr 17, 2018

Accepted: Jan 03, 2019

DOI: https://doi.org/10.2478/bsrj-2019-015

Keywords
foreign firms, domestic firms, productivity

© 2019 Mico Apostolov et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

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

Published Online: Sep 16, 2019

Page range: 18 - 36

Received: Apr 17, 2018

Accepted: Jan 03, 2019

DOI: https://doi.org/10.2478/bsrj-2019-015

Keywordsforeign firms, domestic firms, productivity

© 2019 Mico Apostolov et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
foreign firms, domestic firms, productivity