Foreign ownership and productivity dynamics

In analyzing the distinctive contributions of foreign subsidiaries and domestic firms to productivity growth in Belgian manufacturing, this paper shows that foreign ownership is an important source of firm heterogeneity affecting productivity dynamics. Foreign firms are found to have contributed disproportionately to aggregate productivity growth while reallocation processes are reported to be significantly different among foreign subsidiaries and domestic firms. (C) 2002 Elsevier Science B.V. All rights reserved.