Comparative Analysis of UK Domestic and International Firms

This article examines the relative characteristics and performance of a large sample of UK domestic and international firms. It investigates the relationship between firm size and overseas production activity, and considers whether firms with overseas production operations have different characteristics compared to the domestic firms. It also enquires into the effect of overseas activities on growth and profitability. Little work has so far been done on these questions with regard to UK firms, and studies for other advanced countries have either used aggregate industry data or examined only the largest firms. The results suggest a reconsideration of some accepted views in this area, and have interesting implications for theory and industrial policy.