A report done for Treasury says New Zealand businesses taken over by overseas investors perform better than other firms.
Examining foreign takeovers between 2000 and 2009, the report says foreign-owned firms in New Zealand outperform domestic firms on almost all measures: they are larger, more capital- intensive, pay better wages and have higher productivity.
The report adds a caveat: part of this difference stems from foreign buyers selecting better firms to take over in the first place.
But it also says acquired firms subsequently grow faster than other firms do.
It notes New Zealand is in the top third of OECD nations for the rate of foreign takeover, even though they are often politically unpopular.
