Corvinus
Corvinus

The effect of foreign direct investment on firm labor productivity: does the country of origin of the FDI matter?

Tőkés, László (2019) The effect of foreign direct investment on firm labor productivity: does the country of origin of the FDI matter? Society and Economy, 41 (2). pp. 227-243. DOI https://doi.org/10.1556/204.2019.002

[img]
Preview
PDF - Requires a PDF viewer such as GSview, Xpdf or Adobe Acrobat Reader
248kB

Official URL: https://doi.org/10.1556/204.2019.002


Abstract

Many papers have analyzed the effects of foreign acquisition on fi rm productivity, articulating its positive impacts. However, an important issue remains: is there a general foreign acquisition effect, or is there any heterogeneity in the effects? This paper reports on the analysis of over 3,400 majority foreign acquisitions in Hungary. The main result (which exists in a propensity score matching sample as well) of the difference-in-differences analysis is that only acquirers from higher income countries foster labor productivity signifi cantly – and this effect increases with the income gap between Hungary and the country of origin –, while acquirers from lower income countries do not induce statistically signifi cant effects.

Item Type:Article
Uncontrolled Keywords:foreign acquisition, productivity, country of origin, heterogeneity
JEL classification:D24 - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
F21 - International Investment; Long-term Capital Movements
Subjects:Economic development
International economics
DOI:https://doi.org/10.1556/204.2019.002
ID Code:4198
Deposited By: Veronika Vitéz
Deposited On:09 Aug 2019 12:11
Last Modified:09 Aug 2019 12:11

Repository Staff Only: item control page