Does Foreign Ownership Improve Firms Productivity: An Analytical View
Published: 2017
Author(s) Name: Rajesh Kumar Singh |
Author(s) Affiliation: Indian Institute of Management Raipur, Chhattisgarh, India.
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Abstract
Foreign Direct Investment (FDI)
is one of the vehicles which bring
inflow of capital, technology
upgradation, improvements in
human productivity and efficiency
in firms of the host country
and also change in the ownership
structure of the firms. This
paper explores the relationship
between foreign ownership of the
firms and its impact on the productivity
by reviewing the literature
available over the period of
1976 to 2017. In majority of the
cases over the years, scholars
concluded that foreign ownership
acquired through FDI promotes
total productivity factor as well
as labor productivity except in
two cases, namely: family-owned
firms and firms that employ unskilled
labors.
Keywords: N.A.
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