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Employment effects of foreign acquisition

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  • Bandick, Roger
  • Karpaty, Patrik

Abstract

This paper investigates the employment effects of foreign acquisitions in acquired firms in Swedish manufacturing during the 1990s; a period characterized by a dramatic increase in foreign ownership. We find some evidence of positive employment effects in acquired firms and it seems that the employment of skilled labor increases more than that of less-skilled labor. Our results indicate that the positive employment effects are more pronounced in acquired non-MNEs than in Swedish MNEs. Furthermore, we observe shifts in skill intensities toward higher shares of skilled labor in non-MNEs taken over by foreign MNEs, but not in acquired Swedish MNEs.

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  • Bandick, Roger & Karpaty, Patrik, 2011. "Employment effects of foreign acquisition," International Review of Economics & Finance, Elsevier, vol. 20(2), pages 211-224, April.
    • Handle: RePEc:eee:reveco:v:20:y:2011:i:2:p:211-224
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    Cited by:

    1. Sanjaya Kumar Malik, 2019. "Foreign Direct Investment and Employment in Indian Manufacturing Industries," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 62(4), pages 621-637, December.
    2. Siedschlag Iulia & Kaitila Ville & McQuinn John & Zhang Xiaoheng, 2014. "International Investment and Firm Performance: Empirical Evidence from Small Open Economies," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 234(6), pages 662-687, December.
    3. Ho, Po-Hsin & Lin, Chih-Yung & Tsai, Wei-Che, 2016. "Effect of country governance on bank privatization performance," International Review of Economics & Finance, Elsevier, vol. 43(C), pages 3-18.
    4. Jude, Cristina & Silaghi, Monica Ioana Pop, 2016. "Employment effects of foreign direct investment: New evidence from Central and Eastern European countries," International Economics, Elsevier, vol. 145(C), pages 32-49.
    5. Kokko Ari & Söderlund Bengt & Tingvall Patrik Gustavsson, 2014. "Redirecting International Trade: Contracts, Conflicts, and Institutions," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 234(6), pages 688-721, December.
    6. Liis Roosaar & Urmas Varblane & Jaan Masso, 2020. "Productivity Gains From Labour Churning In Economic Crisis: Do Foreign Firms Gain More?," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 125, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    7. FERRAGINA, Anna Maria, 2013. "The Impact of FDI on Firm Survival and Employment: A Comparative Analysis for Turkey and Italy," CELPE Discussion Papers 127, CELPE - CEnter for Labor and Political Economics, University of Salerno, Italy.
    8. Ragnhild Balsvik & Stefanie A. Haller, 2020. "Worker–Plant Matching and Ownership Change," Scandinavian Journal of Economics, Wiley Blackwell, vol. 122(4), pages 1286-1314, October.
    9. Alessandro Zeli, 2018. "The impact of ACE on investment: the Italian case," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 35(3), pages 741-762, December.
    10. Alexandre Gazaniol, 2012. "The impact of outward FDI on the domestic perimeter of manufacturing groups," Working Papers DT/2012/03, DIAL (Développement, Institutions et Mondialisation).
    11. Runar Brännlund & Jonas Nordström & Jesper Stage & Dick Svedin, 2016. "Foreign ownership and its effects on employment and wages: the case of Sweden," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-17, December.
    12. Lindemanis, Mārtiņš & Loze, Artūrs & Pajuste, Anete, 2022. "The effect of domestic to foreign ownership change on firm performance in Europe," International Review of Financial Analysis, Elsevier, vol. 81(C).
    13. repec:dau:papers:123456789/9019 is not listed on IDEAS
    14. Michael J. Peel, 2018. "Addressing Unobserved Selection Bias in Accounting Studies: The Bias Minimization Method," European Accounting Review, Taylor & Francis Journals, vol. 27(1), pages 173-183, January.
    15. Eduardo Saucedo & Teofilo Ozuna & Hector Zamora, 2020. "The effect of FDI on low and high-skilled employment and wages in Mexico: a study for the manufacture and service sectors," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 54(1), pages 1-15, December.
    16. Richard Kofi Asravor & Frank Gyimah Sackey, 2022. "Wage Price Floors and Sectoral Employment Outcomes in Ghana," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 65(1), pages 103-122, March.
    17. Galina Hale & Mingzhi Xu, 2016. "FDI effects on the labor market of host countries," Working Paper Series 2016-25, Federal Reserve Bank of San Francisco.
    18. Roger Bandick, 2020. "Global sourcing, productivity and export intensity," The World Economy, Wiley Blackwell, vol. 43(3), pages 615-643, March.

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