BEP 2023 04, Svilena Mihaylova, "Foreign Affiliates versus Domestic Firms in the Information and Communication Services Sector in Central and Eastern Europe" (pdf)

(Full text)

Abstract: Given the important role of foreign direct investment in Central and Eastern Europe, the paper explores the performance of foreign affiliates versus domestic firms in the information and communication services sector in eleven countries in the region. Based on Eurostat data for the period 2010-2020, the paper conducts descriptive and comparative analysis of foreign-owned and domestic firms in terms of size, productivity and profitability, as well as their dynamics over time. The results reveal that, on average, foreign-owned firms in the sector tend to be bigger and perform better than their local counterparts, but in the same time there are significant variations across countries.

Keywords: Firm performance; Foreign direct investment; Multinational enterprises

JEL code: L25; F21; F23