Foreign ownership boosts sales and productivity for small firms in developing regions.
Foreign ownership of firms can impact their performance. A study looked at over 80,000 firms from 2010 to 2019 in developed and developing countries. While foreign ownership generally boosts performance, it doesn't consistently vary by firm size. However, in developing regions, small firms benefit the most in terms of sales and productivity growth when owned by foreigners. This suggests that foreign ownership can help small start-ups grow and succeed.