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- Title
Safeguarding Jobs? Acquisition FDI and Employment Dynamics in U.K. Manufacturing.
- Authors
Girma, Sourafel
- Abstract
This paper applies a difference-in-differences methodology based on matched firms to isolate the direct employment effect of recent acquisition FDI in UK. manufacturing. Our analysis indicates that acquisition FDI has led to a reduction in the inefficiency with which labour had been used, but this was not associated, on average, with any significant down sizing. However, by allowing for heterogeneity in the causal effect of foreign take-overs, we uncover detrimental employment effects amongst larger take-over targets, and beneficial impacts amongst smaller ones. JEL no. F23, 123
- Subjects
UNITED Kingdom; FOREIGN investments; EMPLOYMENT; OCCUPATIONS; JOB analysis; MANUFACTURING industries
- Publication
Review of World Economics, 2005, Vol 141, Issue 1, p165
- ISSN
1610-2878
- Publication type
Article
- DOI
10.1007/s10290-005-0020-1