Do Foreign Firms Crowd Out Domestic Firms? Evidence from the Czech Republic

This paper analyzes the impact of foreign presence on growth and survival of domestic firms. I separate the two opposing effects of foreign presence: a negative null null and positive null null and further analyze whether the crowding out effect is dynamic, i.e. domestic firms cut production over time as foreign firms grow, or a static effect realized upon foreign entry into the industry. Using 1994-2001 firm-level panel data for the Czech...