The impact of inward FDI on local companies' labour productivity: evidence from the Italian case

Lucia Piscitello and Larissa Rabbiosi

International Journal of the Economics of Business, 2005, vol. 12, issue 1, 35-51

Abstract: The article aims to investigate the impact of inward foreign direct investment (FDI) occurring through acquisition upon the local target company' performance, as measured by labour productivity. It relies upon the idea that multinational enterprises (MNEs) act as a device to transfer firm-specific proprietary assets, thus causing their subsidiaries to exhibit better performance than their host country rivals. Specifically, our results show that foreign acquisitions generally increase the local target companies' labour productivity in the medium term after the acquisition. The empirical evidence refers to foreign acquisitions that occurred in Italy in the period 1994-1997.

Keywords: Inward FDI; Acquisitions; Multinational Enterprises; Target Company's Performance; Labour Productivity; JEL Classifications: F20; F23; L25 (search for similar items in EconPapers)
Date: 2005
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (28)

Downloads: (external link)
http://www.tandfonline.com/10.1080/1357151042000323120 (text/html)
Access to full text is restricted to subscribers.

Related works:
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:taf:ijecbs:v:12:y:2005:i:1:p:35-51

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/CIJB20

DOI: 10.1080/1357151042000323120

Access Statistics for this article

International Journal of the Economics of Business is currently edited by Eleanor Morgan

More articles in International Journal of the Economics of Business from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().