Malchow-Møller, Nikolaj; Markusen, James R.; … - C.E.P.R. Discussion Papers - 2007
Foreign-owned firms are often hypothesized to generate productivity “spillovers” to the host country, but both …-ante identical workers learn from their employers in proportion to the firm’s productivity. Foreign-owned firms have, on average …, higher productivity in equilibrium due to entry costs, which means that low-productivity foreign firms cannot enter. Foreign …