Blessing or Curse? Domestic Plants' Survival and Employment Prospects After Foreign Acquisition

Sourafel Girma () and Holger Görg ()

No 2994, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This Paper investigates whether the acquisition of a domestic establishment by a foreign owner has any effects, positive or negative, on the survival prospects and employment growth of that plant. The empirical analysis uses data from the Annual Respondents Database (ARD) for the UK electronics industry for the period 1980 to 1993. Estimating a standard hazard model including a dummy variable for the incidence of acquisition yields the result that foreign take-over reduces the lifetime of the acquired plant. Estimations of the determinants of employment growth in domestic plants provide some evidence that the incidence of take-over reduces employment growth, in particular for unskilled labour. Both survival and employment growth estimations do not appear to be subject to endogeneity problems.

Keywords: acquisitions; employment growth; foreign direct investment; survival (search for similar items in EconPapers)
JEL-codes: C41 F23 (search for similar items in EconPapers)
Date: 2001-10
View list of references View citations in EconPapers

Downloads: (external link)
http://www.cepr.org/pubs/dps/DP2994.asp (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Working Paper: Blessing or Curse? Domestic Plants' Survival and Employment Prospects after Foreign Acquisitions (2003)
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: http://EconPapers.repec.org/RePEc:cpr:ceprdp:2994

Ordering information: This working paper can be ordered from
http://www.cepr.org/pubs/dps/DP2994.asp

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers
Address: Centre for Economic Policy Research, 53--56 Great Sutton Street, London EC1V 0DG
Series data maintained by ().