The productivity and wage effects of foreign acquisition in the United Kingdom | Zendy

Conyon Martin J. | Zendy; Girma Sourafel | Zendy; Thompson Steve | Zendy; Wright Peter W. | Zendy

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The productivity and wage effects of foreign acquisition in the United Kingdom

Author(s) -

Conyon Martin J.,

Girma Sourafel,

Thompson Steve,

Wright Peter W.

Publication year - 2002

Publication title -

the journal of industrial economics

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 0.93

H-Index - 77

eISSN - 1467-6451

pISSN - 0022-1821

DOI - 10.1111/1467-6451.00169

Subject(s) - productivity , foreign ownership , wage , labour economics , control (management) , business , kingdom , demographic economics , economics , foreign direct investment , macroeconomics , management , paleontology , biology

This paper provides a systematic empirical analysis of the impact of foreign ownership on productivity and wages in the United Kingdom. Using a specially constructed database for the period 1989–1994, it uses ownership change (acquisition) to control for unobserved differences between plants. It finds that foreign firms pay equivalent employees 3.4% more than domestic firms, though this is wholly attributable to their higher levels of productivity. Firms which are acquired by foreign companies exhibit an increase in labour productivity of 13%.

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