Picking “lemons” or picking “cherries”? : domestic and foreign acquisitions in Norwegian manufacturing
Title: Picking “lemons” or picking “cherries”? : domestic and foreign acquisitions in Norwegian manufacturing
Citation: The Scandinavian Journal of Economics, 2010, Vol. 112, No. 2, pp. 361-387
ISSN: 1467-9442; 0347-0520
We compare the performance in employment, wages and productivity for domestic plants acquired by new domestic and foreign owners. Prospective foreign owners pick large, high-wage, high-productivity plants, while new domestic owners choose average performers of above-average size. Employment, labour productivity, and total factor productivity decline in domestic acquisition targets before acquisitions; only wages recover afterwards. Employment, wages and labour productivity increase after foreign acquisitions. The sample selection introduced by long-term comparisons and a focus on unique events introduces a downward bias into the results for domestic acquisitions and an upward bias for the foreign acquisitions.
Article first published online: 12 April 2010; The article is based on a the chapter 3 of the thesis
Files in this item
There are no files associated with this item.