Quantifying Productivity Gains from Foreign Investment

Christian Fons-Rosen, Sebnem Kalemli-Ozcan, Bent Sorensen, Carolina Villegas-Sanchez () and Vadym Volosovych

No 18920, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We revisit the relationship between foreign investment and productivity of acquired firms. First, we construct a panel firm-level dataset for eight advanced European countries covering domestic and foreign acquisitions together with detailed balance sheet information for the years 1999{2012. Second, we address the challenge of identifying a causal relation. To that end, we compare foreign to domestic acquisitions in addition to accounting for the impact of majority versus minority acquisitions after controlling for country and sector trends. The productivity of foreign acquired affiliates increases modestly after four years, but only when majority stakes are acquired by foreigners. Our results are driven by foreign acquisitions and not by foreign divestment.

JEL-codes: E32 F13 F36 O16 (search for similar items in EconPapers)
Date: 2013-03
New Economics Papers: this item is included in nep-eff, nep-ifn and nep-mac
Note: IFM
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (48)

Published as Fons-Rosen, Christian & Kalemli-Ozcan, Sebnem & Sørensen, Bent E. & Villegas-Sanchez, Carolina & Volosovych, Vadym, 2021. "Quantifying productivity gains from foreign investment," Journal of International Economics, Elsevier, vol. 131(C).

Downloads: (external link)
http://www.nber.org/papers/w18920.pdf (application/pdf)

Related works:
Journal Article: Quantifying productivity gains from foreign investment (2021)
Working Paper: Quantifying Productivity Gains from Foreign Investment (2020)
Working Paper: Quantifying Productivity Gains from Foreign Investment (2013)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:18920

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w18920

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().