Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/2664 
Year of Publication: 
2001
Series/Report no.: 
CEPR Discussion Paper Series No. 2994
Publisher: 
Centre for Economic Policy Research (CEPR), London
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 1980–93. 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.
JEL: 
C41
F23
L63
Document Type: 
Working Paper

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