The effect of investor origin on firm performance: Domestic and foreign direct investment in the United States

Journal of International Economics

Volumn 83, Issue 2, 2011, Pages 219-228

  Chen, Wenjie ^a  

^a GEORGE WASHINGTON UNIVERSITY   (United States)

Author keywords

Acquisitions; Capital flows; Emerging markets; Firm performance; Foreign direct investment

Indexed keywords

CAPITAL FLOW; EMPIRICAL ANALYSIS; EMPLOYMENT; FOREIGN DIRECT INVESTMENT; INDUSTRIAL PERFORMANCE; LABOR PRODUCTIVITY; OWNERSHIP;

UNITED STATES;

EID: 79952002740     PISSN: 00221996     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jinteco.2010.11.005     Document Type: Article

References (39)

1. Aitken B., Harrison A. Do domestic firms benefit from direct foreign investment? Evidence from Venezuela. American Economic Review 1999, 89(3):605-618.
2. Arnold J.M., Javorcik B.S. Gifted kids or pushy parents? Foreign acquisitions and plant performance in Indonesia. Journal of International Economics 2009, 79:42-53.
3. Benfratello L., Sembenelli A. Foreign ownership and productivity: is the direction of the causality so obvious?. International Journal of Industrial Organization 2006, 24(4):733-751.
4. Bernard A.B., Jensen J.B., Redding S., Schott P. Firms in international trade. Journal of Economic Perspectives 2007, 21(3):105-130.
5. Bertrand O., Zitouna H. Domestic versus cross-border acquisitions: which impact on the target firm's performance?. The Research Institute of Industrial Economics Working Paper 647 2005.
6. Caves R. Multinational Enterprise and Economic Analysis 1996, Cambridge University Press, Cambridge, UK.
7. Chari, A., Chen, W., Dominguez, K.M., 2009. Foreign Ownership and Corporate Restructuring: Direct Investment by Emerging-Market Firms in the United States. mimeo. University of Michigan.
8. Conyon M.J., Girma S., Thompson S., Wright P. The impact of mergers and acquisitions on company employment in the United Kingdom. European Economic Review 2001, 46:31-49.
9. Conyon M.J., Girma S., Thompson S., Wright P. The productivity and wage effects of foreign acquisition in the United Kingdom. Journal of Industrial Economics 2002, 50:85-102.
10. Dehejia R.H., Wahba S. Propensity score matching methods for nonexperimental causal studies. Review of Economics and Statistics 2002, 84(1):151-161.
11. DiGiovanni J. What drives capital flows? The case of cross-border M&A activity and financial deepening. Journal of International Economics 2005, 65(1):127-149.
12. Djankov S., Hoekman B. Foreign investment and productivity growth in Czech enterprises. World Bank Economics Review 2000, 14(1):49-64.
13. Doms M.E., Jensen J.N. Geography and ownership as bases for economics accounting. Comparing Wages, Skills, and Productivity between Domestically and Foreign-Owned Manufacturing Establishments in the United States 1995, 235-258. The University of Chicago Press, Ch.
14. Dunning J. International Production and the Multinational Enterprise 1981, George Allen and Unwin, London.
15. Froot K., Stein J. Exchange rates and foreign direct investment: an imperfect capital markets approach. Quarterly Journal of Economics 1991, 106(4):1191-1217.
16. Fukao K., Ito K., Kwon H., Takizawa M. Cross-Border Acquisitions and Target Firms' Performance: Evidence from Japanese Firm-Level Data. NBER Working Papers 12422 2006.
17. Gerfin M., Lechner M. A microeconometric evaluation of the active labour market policy in Switzerland. The Economic Journal 2002, 112:854-893. (October).
18. Girma S. Technology transfer from acquisition FDI and the absorptive capacity of domestic firms: an empirical investigation. Open Economics Review 2005, 16:175-187.
19. Girma S., Görg H. Multinationals' productivity advantage: scale or technology?. Economic Inquiry 2007, 45:350-362.
20. Girma S., Görg H. Evaluating foreign ownership wage premium using a difference-differences matching approach. Journal of International Economics 2007, 72:97-112.
21. Harris R., Ravenscraft D. The role of acquisitions in foreign direct investment: evidence from the U.S. stock market. The Journal of Finance 1991, 46:1022-1035.
22. Harris R., Robinson C. Foreign ownership and productivity in the United Kingdom: estimates for U.K. manufacturing using the ARD. Review of Industrial Organization 2003, 22(3):207-223.
23. Haskel J., Pereira S., Slaughter M. Does inward foreign direct investment boost the productivity of domestic firms?. Review of Economics and Statistics 2007, 89(3):482-496.
24. Helpman E., Melitz M., Yeaple S. Export versus FDI with heterogeneous firms. American Economic Review 2004, 91(4):300-316.
25. Heymann F., Sjöholm F., Tingvall P.G. Is there really a foreign ownership wage premium? Evidence from matched employer-employee data. Journal of International Economics 2007, 73:355-376.
26. Himmelberg C.P., Hubbard R.G., Palia D. Understanding the determinants of managerial ownership and the link between ownership and performance. Journal of Financial Economics 1999, 53:353-384.
27. Hymer S. International Operations of National Firms: A Study of Direct Investment 1976, MIT Press.
28. Imbens G.W. The role of the propensity score in estimating dose-response functions. Biometrika 2000, 87:706-710.
29. Javorcik, B.S., Spatareanu, M., 2010. Does it matter where you come from? Vertical spillovers from foreign direct investment and the origin of investors. Journal of Development Economics. doi:10.1016/j.jdeveco.2010.05.008.
30. Love me, love me not. 2008, July 10. The Economist.
31. Markusen J.R. Multinational Firms and the Theory of International Trade 2002, MIT Press, Cambridge MA.
32. Plesca M., Smith J. Evaluating multi-treatment programs: theory and evidence from the U.S. Job Training Partnership Act experiment. Empirical Economics 2007, 32:491-528.
33. Rosenbaum P., Rubin D. The central role of the propensity score in observational studies for causal effects. Biometrika 1983, 70:41-55.
34. Servaes H. Tobin's Q and the gains from takeovers. Journal of Finance 1991, 46(1):409-419.
35. Smith J., Todd R.E. Does matching overcome Lalonde's critique of nonexperimental estimators. Journal of Econometrics 2005, 125:305-353.
36. Spearot, A.C., 2010. Productivity and the Role of the Global Acquisition Market. mimeo. University of California, Santa Cruz.
37. Swenson D. Foreign mergers and acquisitions in the United States. Foreign Direct Investment 1993, 255-281. University of Chicago Press. K. Froot (Ed.).
38. Wernerfelt B., Montgomery C.A. Tobin's Q and the importance of focus in firm performance. American Economic Review 1988, 78(1):246-250.
39. Yeaple S. The complex integration strategies of multinationals and cross country dependencies in the structure of foreign direct investment. Journal of International Economics 2003, 60(2):293-314.