Why do foreign-owned firms in the UK have higher labour productivity?

Nicholas Oulton

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International Business and FDI Global trade and economics Firm Innovation and Growth

Abstract

Foreign-owned firms in manufacturing have substantially higher labour productivity than domestically owned ones. This basic feature of the UK economy has been known for some time (Davies and Lyons, 1991). The UK is not unique in this respect: the same is true of countries such as the United States (Doms and Jensen, 1998) and Canada (Globerman etal ., 1994). For the UK, the productivity gap at the firm level has been documented by Oulton (1998b); similar findings are reported by Griffith (1999a, 1999b) and in the paper by Girma et al . in this volume.

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1997Capital-Market Imperfections and Investment 1996Competition and Corporate Performance 1994Changes in the Demand for Skilled Labor within U. S. Manufacturing: Evidence from the Annual Survey of Manufactures 1982International Production and the Multinational Enterprise.1969Capital-Skill Complementarity 1998The Origins of Technology-Skill Complementarity 1992Business Fixed Investment Spending: Modeling Strategies, Empirical Results, and Policy Implications 1997Foreign Direct Investment, Technological Change, and Economic Growth Within Europe

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