This article estimates returns to scale and monopolistic markups on a large sample of Polish firms in the manufacturing and services sectors during 1996-2004. Methodology based on instrumental variables allows joint estimation of both, scale elasticities as well as markups, while the unobserved...

Literature is not clear on the eect of FDI on the economic performance in hosting countries. The analysed eects include productivity, propensity to export, access to financial markets, etc. Although foreign subsidiaries usually perform better than the average of the hosting economies, sometimes...