Foreign ownership, returns to scale and productivity: Evidence from UK manufacturing establishments
AbstractThis paper focuses on the pattern of returns to scale and productivity growth in UK manufacturing establishments in the electronics and food industries. Our results show that foreign establishments tend to have lower returns to scale than their domestic counterparts. Moreover, foreign acquisition is found to have a negative effect on RTS, especially in the food sector. Finally, establishments in the electronics sector experience a reduction in productivity post acquisition, while plants in the food sector increase productivity.
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Bibliographic InfoPaper provided by Royal Economic Society in its series Royal Economic Society Annual Conference 2003 with number 87.
Date of creation: 04 Jun 2003
Date of revision:
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returns to scale; foreign direct investment; acquisitions; productivity;
Other versions of this item:
- Girma, Sourafel & Görg, Holger, 2002. "Foreign Ownership, Returns to Scale and Productivity: Evidence from UK Manufacturing Establishments," CEPR Discussion Papers 3503, C.E.P.R. Discussion Papers.
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
This paper has been announced in the following NEP Reports:
- NEP-ALL-2003-06-16 (All new papers)
- NEP-EFF-2003-07-29 (Efficiency & Productivity)
- NEP-IFN-2003-07-21 (International Finance)
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