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Foreign influence, control, and indirect ownership: Implications for productivity spillovers | SpringerLink
Source: link-springer-com.ezproxy.lib.gla.ac.uk
Article summary:
1. The article examines the impact of foreign ownership on domestic firm productivity in the same industry.
2. It defines ‘controlled’ foreign firms as those with a foreign ultimate owner holding 50% or more of voting shares.
3. It finds positive horizontal spillovers from controlled foreign firms and zero spillovers from non-controlled foreign firms, with the strongest positive spillovers coming from indirectly controlled foreign firms.
Article analysis:
The article is generally reliable and trustworthy, as it provides a comprehensive overview of the implications of foreign influence, control, and indirect ownership for productivity spillovers. The authors provide evidence to support their claims by using a firm-level panel dataset of 575,844 manufacturing firms across 20 European countries. They also pay careful attention to how firms are categorized as foreign, taking into account both direct and indirect ownership links. This helps to ensure that their findings are accurate and unbiased.
The article does not appear to have any major biases or one-sided reporting; it presents both sides equally and explores counterarguments where necessary. There are no unsupported claims or missing points of consideration; all relevant information is included in the article. Furthermore, there is no promotional content or partiality present in the article; it is purely factual and objective in its approach. Finally, possible risks are noted throughout the article, ensuring that readers are aware of any potential issues associated with the topic at hand.