Sara McGaughey, Pascalis Raimondos, 29 June 2018

Researchers and policymakers often refer to ‘foreign firms’, but how do we define a firm as ‘foreign’ and does it matter for our policy conclusions? This column argues due to the dominant practice of using only direct ownership links to identify the owners of a firm, the commonly used definition of a foreign firm captures only half of the foreign firms that exist. Indirect ownership link turns out to be pivotal for identifying firms that appear to be domestic but are in reality foreign, with implications for the measurement of FDI productivity spillovers.    

Stela Rubínová, Emmanuel Dhyne, 04 July 2016

Even in export-oriented industries, only a handful of firms ship their goods abroad. These firms are systematically different from their purely domestic counterparts. This column sheds light on the domestic supply chain of exporters to uncover firms whose production is exported indirectly. Accounting for indirect exporters brings the empirics of international trade closer to the modern structure of production, characterised by many stages in possibly many locations. These findings suggest that the distributional effects of globalisation go beyond the exporters versus non-exporters dichotomy.

Olivier Godart, Aoife Hanley, Holger Görg, 21 February 2012

When disaster strikes, what happens to foreign firms? Do they move away, leaving an already unstable economy even further off balance? Or do they sit on their sunk costs and help steady the ship? This column looks at data from Ireland during the recent financial turmoil.

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