This study analyses the production efficiency gains in terms of technology transfer and labour productivity changes caused by diverse degrees of foreign ownership using a sample of 4056 manufacturing firms operating in Greece in 1997.

The paper proposes a stochastic frontier model with random coefficients to separate technical inefficiency from technological differences across firms, and free the frontier model from the restrictive assumption that all firms must share exactly the same technological possibilities.

Social justice has become a main objective of economic policy and so often dominates efficiency considerations. In the history of economic thoughts the trade off between efficiency and justice has often been discussed but remained an unsolved problem. In using a simple approach of standard...