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

Sarmento, Paula; Forte, Rosa

doi:10.1007/s11294-019-09744-5

Cited by 4 publications

(2 citation statements)

References 32 publications

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“…On MHT and LT firms, the foreign presence could lead to market stealing effects due to crowding-out effect on domestic firms, in line with previous findings (Li & Luo 2019). Sarmento and Forte (2019) suggested that foreign-owned firms may have a lower probability of exiting the market than domestic firms, thus probably leading to the transfer of domestic market shares to foreign owned firms. Foreign firms with advanced technology benefit by entering sectors facing low productivity, high inefficiency, and low concentration (Orlic et al 2018).…”

Section: The Impact Of Foreign Direct Investment On Total Factor Prod...supporting

confidence: 85%

The Effects of Market Concentration, Trade, and FDI on Total Factor Productivity: Evidence from Indonesian Manufacturing Sector

2023

JEM

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This study empirically examines the effects of exports, imports, market concentration, and foreign direct investment (FDI) on total factor productivity (TFP). We use a sample of 18,002 Indonesian manufacturing firms, categorized according to technology intensity of low, medium, and medium-high over 2010-2014. TFP and its sub-components, e.g., technical efficiency, technological progress, and scale effect, are estimated using a Malmquist Productivity Index (MPI). The estimation results indicate that market concentration, trade, and FDI positively impact technical efficiency and production scale, but reduce technological progress, which inhibits sectoral development. FDI inflows in Indonesia increase technical efficiency but negligibly enhance technological competencies and the scale of operation in recipient sectors. Increasing firm size is crucial in achieving greater productivity. An increase in market concentration has a negative effect on TFP. This negative impact increases as the share of exports, imports, and FDI in the sector intensifies. Investment and export promotion policies should be tailored based on the technology intensity (low, medium, and medium-high) as the effects of FDI and export participation differ across industries.

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Section: The Impact Of Foreign Direct Investment On Total Factor Prod...supporting

confidence: 85%

The Effects of Market Concentration, Trade, and FDI on Total Factor Productivity: Evidence from Indonesian Manufacturing Sector

2023

JEM

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“…Foreign entry is more likely to increase host-country industry concentration in developing economies (Amess & Roberts, 2005). Sarmento and Forte (2019) argue that foreign presence at the industry level increases a domestic firm's probability of exit from manufacturing sectors, and firms with foreign ownership have a lower possibility of exit than purely local firms. Besides being able to overcome capital constraints, the presence of foreign firms can also affect high concentration in the industries.…”

Section: Introductionmentioning

confidence: 99%

Foreign Presence and Industrial Concentration In Indonesian Food Industries

et al. 2020

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Indonesia requires foreign investment to meet the capital needs of the food industries. On the other hand, foreign presence can cause high industrial concentration. This paper analyzes the effect of foreign presence on the concentration of the food industry in Indonesia using panel data from 28 subsectors in the period 2011-2015. The data used is the annual Large and Medium Industries Survey (IBS) data from Statistics Indonesia. The concentration indicators used are the concentration ratio (CR4) and the Herfindahl Hirschman Index (HHI). By using panel regression, the result shows that foreign presence has a positive influence on the concentration of the food industry in Indonesia. Besides, the economies of scale and market size also significantly influence the concentration of the food industry. The result indicates that the government investment policy must endorse more competition among firms.JEL Classification Code: L66, L16 How to Cite:Nauly, D., Harianto., Hartoyo, S., & Novianti, T. (2020). Foreign Presence and Industrial Concentration in Indonesian Food Industry. Signifikan: Jurnal Ilmu Ekonomi, Vol. 9(1), 69-80. doi: http://dx.doi.org/10.15408/sjie.v9i1.12200.

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Business group affiliation and product market competition

Pereira

Sousa

2023

J. Ind. Bus. Econ.

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

Cited by 4 publications

References 32 publications

The Effects of Market Concentration, Trade, and FDI on Total Factor Productivity: Evidence from Indonesian Manufacturing Sector

The Effects of Market Concentration, Trade, and FDI on Total Factor Productivity: Evidence from Indonesian Manufacturing Sector

Foreign Presence and Industrial Concentration In Indonesian Food Industries

Business group affiliation and product market competition

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