Foreign acquisition, plant survival, and employment growth

Roger Bandick () and Holger Görg ()

No 7329, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This paper analyses the effect of foreign acquisition on survival probability and employment growth of target plant using data on Swedish manufacturing plants during the period 1993-2002. An improvement over previous studies is that we take into account firm level heterogeneity by separating the targeted plants into those within Swedish MNEs, Swedish exporting non-MNEs, and purely domestic firms before foreign takeover. The results, controlling for possible endogeneity of the acquisition dummy using an IV and propensity score matching approach suggest that acquisition by foreign owners increases the lifetime of the acquired plants only if the plant was an exporter. The effect differs depending on whether the acquisition is horizontal or vertical. We also find robust positive employment growth effects only for exporters, and only if the takeover is vertical, not horizontal.

Keywords: acquisitions; employment growth; multinational enterprises; plant survival (search for similar items in EconPapers)
JEL-codes: F23 L23 (search for similar items in EconPapers)
Date: 2009-06

Downloads: (external link)
http://www.cepr.org/pubs/dps/DP7329.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: Foreign acquisition, plant survival, and employment growth (2009)
Working Paper: Foreign acquisition, plant survival, and employment growth (2009)
Working Paper: Foreign acquisition, plant survival, and employment growth (2009)
Working Paper: Foreign Acquisition, Plant Survival, and Employment Growth (2009)
Working Paper: Foreign Acquisitions, Plant Survival, and Employment Growth
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:7329

Ordering information: This working paper can be ordered from
http://www.cepr.org/pubs/dps/DP7329.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 ().