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

International Journal of the Economics of Business

Volumn 12, Issue 1, 2005, Pages 35-51

  Piscitello, Lucia ^a   Rabbiosi, Larissa ^a  

^a POLITECNICO DI MILANO   (Italy)

Author keywords

Acquisitions; Inward FDI; Labour Productivity; Multinational Enterprises; Target Company's Performance

Indexed keywords

EID: 13944269595     PISSN: 13571516     EISSN: None     Source Type: Journal    
DOI: 10.1080/1357151042000323120     Document Type: Review

References (65)

1. nd edition) (Boston: PWS Kent).
2. Aitken, B.J. and Harrison, A.E. (1999) Do domestic firms benefit from direct foreign investment? Evidence from Venezuela, American Economic Review, 89, pp.605-18.
3. Blomström, M. (1991) Host country benefits of foreign direct investment, in: D.G. McFetridge (Ed), Foreign Investment, Technology and Economic Growth (Toronto: University of Toronto Press).
4. Blomström, M. and Kokko, A. (1998) Multinational corporations and spillovers, Journal of Economic Surveys, 12, pp. 247-77.
5. Blonigen, B.A. and Tomlin, K. (1999) Size and growth of Japanese plants in the United States, NBER working paper No. 7275.
6. Brandenburger, A. and Polak, B. (1996) When mergers cover their posteriors: making decisions the market want to see, Rand Journal of Economics, 27, pp. 523-41.
7. Brown, G. and Medoff, J. (1998) The impact of firm acquisition on labor, in: A.J. Auerbach, (Ed), Corporate Takeovers: Causes and Consequences (London and Chicago: Chicago University Press).
8. Buckley, P.J. and Casson, M. (1976) The Future of the Multinational Enterprise (London: MacMillan).
9. Capron, L. and Mitchell, W. (1998) The role of acquisitions in reshaping business capabilities in the international telecommunications industry, Industrial and Corporate Change, 7, pp. 715-30.
10. Caves, R. (1974) Multinational Enterprise and Economic Analysis (Cambridge: Cambridge University Press).
11. Cohen, W.M. and Levinthal, D.A. (1990) Absorptive capacity: a new perspective on learning and innovation, Administrative Science Quarterly, 35, pp. 128-52.
12. Conyon, M.J., Girma, S., Thompson, S. and Wright, P.W. (2002a) The productivity and wage effect of foreign acquisition in the United Kingdom, The Journal of Industrial Economics, 50, pp. 85-102.
13. Conyon, M.J., Girma, S., Thompson, S. and Wright, P.W. (2002b) Do hostile mergers destroy jobs? Research Paper No. 9, Centre for Research on Globalisation and Labour Markets, School of Economics, University of Nottingham.
14. Davies, S.W. and Lyons, B.R. (1991) Characterising relative performance: the productivity advantage of foreign-owned firms in the UK, Oxford Economic Papers, 43, pp. 584-95.
15. De Backer, K. and Sleuwaegen, L. (2002) Why are foreign firms more productive than domestic firms? Athens: XXVIII Annual EIBA Conference.
16. Dickerson, A.P., Gibson, H.D. and Tsakalotos, E. (1997) The impact of acquisitions on company performance: Evidence from a large panel of UK firms, Oxford Economic Papers, 49, pp. 344-61.
17. Dimelis, S. and Louri, H. (2002) Foreign ownership and production efficiency: a quantile regression analysis, Oxford Economic Papers, 54, pp. 449-69.
18. Doms, M. and Jensen, B.J. (1998) Comparing wages, skills, and productivity between domestically and foreign-owned manufacturing establishments in the United States, in: R.E. Baldwin, R.E. Lipsey and T.D. Richardson (Eds), Geography and Ownership as Bases for Economic Accounting, Studies in Income and Wealth, 59, pp. 235-55 (Chicago: University of Chicago Press).
19. Driffield, N. (1996) Global Competition and the Labour Market (Reading, UK: Harwood).
20. Driffield, N. (1999) Indirect employment effects of foreign direct investment into the UK, Bulletin of Economic Research, 51, pp. 207-21.
21. Dunning, J. (1985) The United Kingdom, in: J. Dunning (Ed), Multinational Enterprises, Economic Structure and International Competitiveness (Chichester, UK: Wiley).
22. Dunning, J.H. (1977) Trade, location of economic activity and the MNE: a search for an eclectic approach, in: B. Ohlin, P. Hesselborn and P. Wijkman (Eds), The International Allocation of Economic Activity (London: MacMillan).
23. Epple, D., Argote, L. and Murphy, K. (1996) An empirical investigation of the micro structure of knowledge acquisition and transfer through learning by doing, Operations Research, 44, pp. 77-86.
24. Firth, M. (1980) Takeovers, shareholders returns, and the theory of the firm, The Quarterly Journal of Economics, 94, pp. 235-60.
25. Galbraith, C.S. (1990) Transferring core manufacturing technologies in high technology firms, California Management Review, 32, pp. 56-70.
26. Girma, S. and Görg, H. (2001) Blessing or curse? Domestic plants survival and employment prospects after foreign acquisition, Leverhulme Centre, Research paper No. 18.
27. Girma, S., Greenaway, D., Wakelin, K., and Sousa, N. (2000) Host country effects of FDI in the UK: recent evidence from firm level data, in: N. Pain (Ed.), Inward Investment, Technological Change and Growth: The Impact of Multinational Corporations on the UK Economy, pp. 104-121, (London: Palgrave Press).
28. Globerman, S. (1975) Technological diffusion in the Canadian tool and dye industry, Review of Economics and Statistics, 57, pp. 428-44.
29. Globerman, S., Ries, J.C. and Vertinsky, I. (1994) The economic performance of foreign affiliate in Canada, Canadian Journal of Economics, 27, pp. 143-56.
30. Görg, H. and Strobl, E. (2001) Multinational companies and productivity spillovers: A meta-analysis, Economic Journal, 111, pp. 723-39.
31. Griffith, R. and Simpson, H. (2001) Characteristics of foreign owned firms in British manufacturing, Institute for Fiscal Studies, Working paper No. 10.
32. Gupta, A.K. and Govindarajan, V. (2000) Knowledge flows within multinational corporations, Strategic Management Journal, 21, pp. 473-96.
33. Haddad, M. and Harrison, A. (1993) Are there positive spillovers from direct foreign Investment? Journal of Development Economics, 42, pp. 51-74.
34. Halpern, P. (1983) Corporate acquisitions: A theory of special case? A review of event studies applied to acquisitions, Journal of Finance, 38, pp. 297-317.
35. Haskel, J.E., Pereira, S.C. and Slaughter, M.J. (2002) Does inward foreign direct investment boost the productivity of domestic firms? NBER working paper No. 8724, Cambridge.
36. Hofstede, G. (1984) Culture's Consequences: International Differences in Work Related Values (Beverly Hills, CA: Sage).
37. Hubert, F. and Pain, N. (2000) Inward Investment and Technical Progress in the UK, OCED Economic Department Working Paper No. 268.
38. Hughes, A. (1993) Mergers and economic performance in the UK: A survey of the empirical evidence 1950-90, in: M. Bishop and L. Kay (Eds), European Mergers and Merger Policy (Oxford: Oxford University Press).
39. Hymer, S.H. (1976) The International Operations of National Firms: a Study of Direct Investment (Cambridge, MA: MIT Press).
40. Jensen, M.C. (1988) Takeovers: their causes and consequences, Journal of Economic Perspectives, 2, pp. 21-48.
41. Johanson, J. and Vahlne, J.E. (1977) The internationalisation process of the firm. A model of knowledge development and increasing foreign market commitment, Journal of International Business Studies, 8, pp. 23-32.
42. Jonas, A.E.G. (1992) Corporate takeovers and the politics of community: the case of the Norton company in Worcester, Economic Geography, 68, pp. 348-72.
43. Kumar, M.S. (1984) Growth, Acquisition and Investment: An Analysis of the Growth of Industrial Firms and their Overseas Activities (Cambridge: Cambridge University Press).
44. Lichtenberg, F.R. and Siegel, D. (1992) Productivity and changes in ownership of manufacturing plants, in: F.R. Lichtenberg (Ed), Corporate Takeovers and Productivity (Cambridge, MA: MIT Press).
45. Lipsey, R.E. (2002) Home and host country effects of foreign direct investment, Lidingo, Sweden: Conference on "Challenges to Globalisation".
46. Lovering, J. (2003) MNCs and wannabes - inward investment, discourses of regional development, and the regional service class, in: N. Phelps and P. Raines (Eds), The New Competition for Inward Investment. Companies, Institutions and Territorial Development (Cheltenham, UK: Edward Elgar).
47. Markusen, J.R. and Venables, A.J. (1999) Foreign direct investment as a catalyst for industrial development, European Economic Review, 43, pp. 335-56.
48. Matsusaka, J.G. (1993) Target profits and managerial discipline during the conglomerate merger wave, The Journal of Industrial Economics, 41, pp. 179-89.
49. McGuckin, R.H. and Nguyen, S.V. (1995) On productivity and plant ownership change: new evidence from the Longitudinal Research Database, RAND Journal of Economics, 26, pp. 257-76.
50. McGuckin, R.H. and Nguyen, S.V. (2001) The impact of ownership changes: a view from labour markets, International Journal of Industrial Organisation, 19, pp. 739-62.
51. McGuckin, R.H., Nguyen, S.V. and Reznek, A.P. (1995) The impact of ownership change on employment, wages and labour productivity in US manufacturing 1977-87, Center for Economic Studies, US Bureau of Census, pp. 95-8.
52. Morck, R., Shleifer, A. and Vishny, R.W. (1990) Do managerial objectives drive bad aquisitions? Journal of Finance, 45, pp. 31-48.
53. OECD (1996) Globalisation of Industry (Paris).
54. Pfaffermayr, M. and Bellak, C. (2000) Why foreign-owned firms are different: a conceptual framework and empirical evidence from Austria, HWWA Discussion Paper 115.
55. Raines, P. (2003) Flows and territories: the new geography of competition for mobile investment in Europe, in: N. Phelps and P. Raines (Eds), The New Competition for Inward Investment. Companies, Institutions and Territorial Development (Cheltenham, UK: Edward Elgar).
56. Ravenscraft, D.J. and Scherer, F.M. (1987) Life after takeover, Journal of Industrial Economics, 36, pp. 147-56.
57. Rogers, E.M. (1995) Diffusion of Innovations (New York: Free Press).
58. Scherer, F.M., Bechsteinn, A., Murhy, K.E. and Murphy, R.D. (1975) The Economics of Multi-plant Operation: an International Comparison study (Cambridge, MA: Harvard University Press).
59. Shleifer, A. and Summers, L. (1988) Breach of trust in hostile takeovers, in: A.J. Aurbach (Ed), Corporate Takeovers: Causes and Consequences (Chicago: University of Chicago Press).
60. Shleifer, A. and Vishny, R.W. (1989) Management entrenchment: the case of manager-specific investments, Journal of Financial Economics, 25, pp. 123-40.
61. Slusky, A.R. and Caves, R.E. (1991) Synergy, agency, and the determinants of premia paid in mergers, Journal of Industrial Economics, 39, pp. 277-96.
62. Stigler, G.J. (1964) A Theory of oligopoly, Journal of Political Economy, 72, pp. 55-59.
63. UNCTAD (2003) World Investment Report (New York and Geneva: United Nations).
64. Vernon, R. (1966) International investment and international trade in the product cycle, Quarterly Journal of Economics, 80, pp. 190-207.
65. Young, S., Hood, N. and Wilson, A. (1994) Targeting policy as a competitive strategy for European inward investment agencies, European Urban and Regional Studies, 1, pp. 143-59.