Multinationals and productivity: evidence from the Turin Area

This paper present a non-parametric estimate of efficiency levels and productivity trends of small and medium multinational firms operating in the Turin area in respect to domestic firms active in the same sectors. MNEs appear more technically efficient in combining inputs to obtain output, however this evidence is mainly driven by firm's characteristics and specialisation in certain activities. Moreover, an higher Total Factor Productivity (TFP) growth emerges for the subgroup of MNEs also after different control process, while no clear evidence could be find on the entrance strategy pursued by foreign firms (Greenfield vs Brownfield investments).