Foreign acquisition, plant survival, and employment growth

Roger Bandick and Holger Görg

Chapter 7 in Multinational Enterprises and Host Country Development, 2016, pp 115-141 from World Scientific Publishing Co. Pte. Ltd.

Abstract: This paper analyzes the effect of foreign acquisition on survival and employment growth of targets using data on Swedish manufacturing plants. We separate targeted plants into those within Swedish MNEs, Swedish exporting non-MNEs, and purely domestic firms. The results, controlling for possible endogeneity of acquisition using IV and propensity score matching approaches suggest that acquisition by foreign owners increases the lifetime of the acquired plants only if the plant was an exporter. The effect is robust to controlling for domestic acquisitions and differs between horizontal and vertical acquisitions. We find robust positive employment growth effects only for exporters and only if the takeover is vertical.

Keywords: Multinational Enterprises; Foreign Direct Investment; Spillovers; Development; Host Country (search for similar items in EconPapers)
Date: 2016
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Related works:
Journal Article: Foreign acquisition, plant survival, and employment growth (2010)
Journal Article: Foreign acquisition, plant survival, and employment growth (2010)
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 (2009)
Working Paper: Foreign acquisition, plant survival, and employment growth (2009)
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