Journal of Industry, Competition and Trade

, Volume 4, Issue 3, pp 163–189

Firm Growth and FDI: Are Multinationals Stimulating Local Industrial Development?

  • Georgios Fotopoulos
  • Helen Louri


The aim of this paper is to improve our understanding of the empirical determinants of firm growth by extending the literature to include a new group of variables related to foreign direct investment (FDI), namely the degree of foreign ownership and technology spillovers. Based on recent developments in the field, our analysis also encompasses the role of sunk costs and financial constraints, while quantile regression techniques are adopted as more suitable to the data available (2,640 manufacturing firms operating in Greece in the 1992–1997 period). Our findings highlight the role of FDI in increasing firm growth with varying intensity depending on industry groups and regression quantiles, and vindicate the use of new variables.

firm growth FDI spillovers quantile regression 


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Copyright information

© Kluwer Academic Publishers 2004

Authors and Affiliations

  • Georgios Fotopoulos
    • 1
  • Helen Louri
    • 2
  1. 1.Department of Economics, University Campus, RioUniversity of PatrasPatrasGreece
  2. 2.Department of EconomicsAthens University of Economics and BusinessAthensGreece

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