ABSTRACT
This chapter investigates the production indicators and describes the firm groups and methodology. The scope of indicators in the analysis was chosen according to whether or not they reflect some contribution of foreign capital to parameters of economic development. The chapter presents a comparison of the productivity, factor intensity, wages, export activity, profitability, and the rate of tax of domestic and the formation of three types of foreign enterprises (FEs) in Hungary. FEs1 will include those firms at which the foreign share in nominal capital is below 25 percent, but more than 0 percent. FEs2 will indicate enterprises, where foreign share is between 25 percent and 50 percent. Majority-foreign enterprises (FEs3) will refer to firms in which the foreign share of nominal capital is above 50 percent. The chapter shows that the most important differences of performance between foreign and domestic firms seem to be in productivity, wages and the rate of tax in Hungary.
