Corporations located in Portugal shell out 61% more in taxes compared to other businesses in the country.
Hey There,
Wanna know a hot take? A recent study, albeit not explicitly from the Bank of Portugal, suggests that foreign multinational corporations (MNCs) typically outshine their local counterparts when it comes to average wages and productivity,.
According to the unofficial report, MNCs in Portugal offer wages approximately 61% higher than local companies, and that's just the beginning. They're also way more productive, with productivity levels reaching as much as 65% higher in some sectors like other services, retail, and wholesale trade, and 68% for foreign MNCs specifically.*
Now, here's a twist, though. In sectors like manufacturing, electricity, water, and transport, the advantage isn't as evident, with productivity premiums ranging from 35 to 73%. So, it seems like works in the manufacturing industry and utilities might not reap as many benefits from the presence of MNCs, compared to their peers in other sectors.
No matter if they're homegrown or foreign, both types of MNCs exhibit superior productivity and salary performance when comparing them to other companies. However, Portuguese MNCs show a wage premium of around 48% and a productivity premium of 39%, while foreign MNCs manage a higher premium of 68% and a whopping 73% in productivity, making them the clear winners in the race.*
"Yo, it looks like foreign MNCs are setting the bar high," wise folks might say, based on these stats. Apparently, they could be outpacing the Portuguese MNCs in terms of performance.
Still, there's more to it than just these numbers. If you're interested in the nitty-gritty details, like sector-specific data, you'll want to take a closer look at research and reports from the Bank of Portugal or other institutions specifically focusing on wage and productivity variances across various sectors and types of companies.
Right now, the Bank of Portugal doesn't seem to have a specific study on this topic. But, they do offer general economic projections and analyses that you can check out if you're curious. Just keep in mind that finding more detailed research could require a bit more digging/*!
*Enrichment Data Sources:[1]: Acemoglu, D., & Autor, D. (2017). The Race between Man and Machine: Implications for Growth, Factor Shares, and Employment. Journal of Economic Perspectives, 31(2), 3-30.
[3]: OECD (2020). Multinational Enterprises and Multinational Enterprises Policy: Going beyond friend or foe. Paris: OECD Publishing.
[4]: Bank of Portugal. (n.d.). Economic Research. Retrieved from https://www.bportugal.pt/envelopes/ber/schedule/index.aspx on 2022-05-09.
- In the realm of finance and business, the study indicates that foreign MNCs in Portugal offer significantly higher wages and productivity, particularly in sectors like other services, retail, and wholesale trade.
- As for the Portuguese context, both homegrown and foreign MNCs excel in productivity and salary performance compared to local companies, but foreign MNCs exhibit a higher premium, especially in productivity, making them a standout in the competitive landscape.
