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Evaluation Method: (Generalised) Propensity Score Matching, Difference-in-Difference Estimation and Dose-Response-Functions

In: The Impact of International Trade and FDI on Economic Growth and Technological Change

Author

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  • Patricia Hofmann

    (University of Hohenheim)

Abstract

In short, the two empirical contributions of this dissertation deal with the questions (i) What is the effect of being acquired by a foreign investor for the target firm’s innovation activities? and (ii) How does the intensity of exporting alter the performance of a firm? The fundamental evaluation problem that is common to both of these research questions is the intention to compare the outcome variable for the same statistical unit ‘with treatment’ and ‘without treatment’. In order to answer the first question for example, it is necessary to compare the levels of innovation expenditures of a target firm in the period after being acquired with the same firm’s innovation expenditures had it not been acquired. Since no individual or firm can be subject to treatment and not at the same time, this direct comparison is not possible and it has to be searched for an alternative evaluation method.

Suggested Citation

  • Patricia Hofmann, 2013. "Evaluation Method: (Generalised) Propensity Score Matching, Difference-in-Difference Estimation and Dose-Response-Functions," Contributions to Economics, in: The Impact of International Trade and FDI on Economic Growth and Technological Change, edition 127, chapter 0, pages 171-187, Springer.
    • Handle: RePEc:spr:conchp:978-3-642-34581-4_5
    DOI: 10.1007/978-3-642-34581-4_5
    as

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