This paper examined the difference in productivity and R&D activity between foreign- and domestic-owned firms using a firm-level data in Korea. Most of the available data of foreign- and domestic-owned firms in Korea does not identify the multi-nationality and foreign ownership. Moreover, simple regression to analyze the effect of foreign ownership on the performance of firms might produce biased results. Therefore, this study adopted the propensity score matching method to generate a comparable group of domestic-owned firms with similar characteristics to foreign-owned firms, and compared them. PSM analysis suggests that the foreign-ownership might not affect the productivity and R&D activity.
Abstract
Ⅰ. Introduction
Ⅱ. Methodology and Data
Ⅲ. Empirical Results
Ⅳ. Summary and Conclusion
References
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