FDI Productivity Premium and Foreign Affiliates Heterogeneity: A Comparison between Advanced and Emerging Market Overseas Investments in the EU
This paper aims to investigate the existence of productivity heterogeneity among foreign-owned firms (FOFs) based in the European Union (EU). Using firm-level data for a sample of FOFs investing in the EU over the period 2006-2014, we find that foreign affiliates from advanced countries (AFOFs) show a positive productivity gap compared to foreign affiliates from emerging countries (EFOFs).