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Foreign ownership, returns to scale and productivity: Evidence from UK manufacturing establishments

Author

Listed:
  • Girma, Sourafel

    (University of Leicester)

  • Holger Gorg

Abstract

This 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.

Suggested Citation

  • Girma, Sourafel & Holger Gorg, 2003. "Foreign ownership, returns to scale and productivity: Evidence from UK manufacturing establishments," Royal Economic Society Annual Conference 2003 87, Royal Economic Society.
  • Handle: RePEc:ecj:ac2003:87
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    References listed on IDEAS

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    Cited by:

    1. Giorgio Barba Navaretti & Davide Castellani, 2003. "Investments Abroad and Performance at Home Evidence from Italian Multinationals," Development Working Papers 180, Centro Studi Luca d'Agliano, University of Milano.
    2. Bertrand, Olivier & Zuniga, Pluvia, 2006. "R&D and M&A: Are cross-border M&A different? An investigation on OECD countries," International Journal of Industrial Organization, Elsevier, vol. 24(2), pages 401-423, March.
    3. Schiffbauer, Marc & Siedschlag, Iulia & Ruane, Frances, 2017. "Do foreign mergers and acquisitions boost firm productivity?," International Business Review, Elsevier, vol. 26(6), pages 1124-1140.
    4. Guest Editors & Ana Teresa Tavares & Stephen Young, 2005. "FDI and multinationals: patterns, impacts and policies," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 12(1), pages 3-16.
    5. Sergio Salis, 2006. "Evaluating the Causal Effect of Foreign Acquisition on Domestic Performances: The Case of Slovenian Manufacturing Firms," William Davidson Institute Working Papers Series wp803, William Davidson Institute at the University of Michigan.
    6. Oldford, Erin & Otchere, Isaac, 2016. "Are cross-border acquisitions enemy of labor? An examination of employment and productivity effects," Pacific-Basin Finance Journal, Elsevier, vol. 40(PB), pages 438-455.

    More about this item

    Keywords

    returns to scale; foreign direct investment; acquisitions; productivity;

    JEL classification:

    • 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

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