Blessing or curse? Domestic plants' survival and employment prospects after foreign acquisition

Arbeitspapier

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 1980–93. 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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CEPR Discussion Paper Series ; No. 2994

Classification and Topics

• Classification: Wirtschaft ; Duration Analysis; Optimal Timing Strategies ; Multinational Firms; International Business ; Microelectronics; Computers; Communications Equipment
• Subject: Direktinvestition ; Elektronikindustrie ; Beschäftigungseffekt ; Großbritannien

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Girma, Sourafel ; Görg, Holger
• Event: Veröffentlichung
• (who): Centre for Economic Policy Research (CEPR)
• (where): London
• (when): 2001

Further information

• Handle: http://hdl.handle.net/10419/2664
• Last update: 10.03.2025, 11:44 AM CET