Abstract
The objective of the paper is to asses the role of foreign enterprises in the Czech economy and to compare the performance and structure of foreign and domestic firms. The analysis is based on the firm-level data during 2002-2007. It shows that role of foreign enterprises in the Czech economy has been growing however with different intensity as for sectors. Foreign firms have on average higher productivity than domestic firms across all sectors of the economy. The results indicate significant differences in allocation patterns between domestic and foreign firms. While domestic firms are mainly represented in marketing driven industries and in mainstream manufacturing industries, foreign enterprises are strongly represented in and capital intensive industries high-tech industries. The share of foreign firms in labor intensive industries is decreasing over time.
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