Does Foreign Presence Induce Host Country Firms' Exit? The Case of Portugal

• Type: Article in International Scientific Journal
• Date: 2019

Authors

Paula Sarmento (Author) FEP; Rosa Maria Forte (Author) FEP

Journal

Title: International Advances in Economic Research

Vol. 25

Pages: 323-337

ISSN: 1083-0898

Publisher: Springer Nature

Indexing

ISI Web of Knowledge - 1 Citation

Scopus - 2 Citations

Other information

Authenticus ID: P-00Q-ZAZ

DOI: 10.1007/s11294-019-09744-5

Abstract (EN): This paper analyzes the impact of foreign presence on the probability of exit of host country firms, based on a significant sample of Portuguese companies from manufacturing and services over the period 2008-2012. The estimation results of a probit model strongly indicate that foreign presence at the industry level increases a host country firm's probability of exit from manufacturing sectors. We also conclude that firms with foreign ownership have a lower probability of exit than purely domestic firms. Additionally, empirical findings also confirm that a firm's probability of exit is influenced by the firm's characteristics such as age, productivity and debt structure.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 15