Also in the case of insider privatization the performance of enterprises with managers ownership has been usually better than enterprises acquired by workers. However, one can not claim that all empirical studies in post-socialist countries would lead to the above conclusion, in all periods. There are also some examples where the link between the efficiency and ownership type of the enterprise has not been established or where the insider owners have turned out more efficient than expected. The pervasive understanding in theoretical literature, however is that the enterprises in foreign ownership have proved themselves, at least in post-socialist countries, more successful than the others. There are several aspects, which explain the role of foreign direct investment in enterprise restructuring.
Foreign investors can establish effective corporate governance.
Foreign direct investments create transfer of knowledge in the form of management, know-how and technology. Foreign direct investments rearrange the industry structure and thus the specialization patterns of a country. All these aspects are the subject of efficiency improvement and stimulate the growth. Foreign direct investment give stronger impact on improvement of industry efficiency than investments made by domestically owned enterprises. In DEs the growth has been even larger than in FIEs.