The Causal Effect of Exporting and Multinational Acquisition on TFP in UK: An Evaluation Method Approach

GEP Research Paper 2008/16

33 Pages Posted: 17 Oct 2008 Last revised: 30 Nov 2008

See all articles by Agelos Delis

Agelos Delis

Aston University - Aston Business School; University of Nottingham - Nottingham Centre for Research on Globalisation and Economic Policy

Date Written: April 1, 2008

Abstract

This paper assesses the effect on total factor productivity (TFP) of a change in the status of a firm from domestic producer to either exporter or subsidiary of a multinational firm. It is an extension of earlier work that looks solely on the effect of exporting on TFP (Girma et al, 2003 and 2004 and Wagner, 2002). In particular, it estimates the differences in TFP between domestic, exporting firms or subsidiaries of multinationals after controlling for the likely presence of endogeneity using the Multiple Treatment Approach (Blundell and Costa Dias, 2000 and Lechner, 2001). Results show that firms that have become exporters experience higher TFP, between 7.8% and 8.8%, with respect to domestic producers. Productivity gains were also experienced for firms acquired by multinationals relative to domestic producers ranging from 11.5% to 13%. Finally, exporters have a lower annual TFP compared to firms acquired by multinationals by around 10 percentage points.

Keywords: Exporting, aquisition, TFP, multinationals, propensity score matching, multiple treatments

JEL Classification: F14, F23

Suggested Citation

Delis, Agelos, The Causal Effect of Exporting and Multinational Acquisition on TFP in UK: An Evaluation Method Approach (April 1, 2008). GEP Research Paper 2008/16, Available at SSRN: https://ssrn.com/abstract=1123564 or http://dx.doi.org/10.2139/ssrn.1123564

Agelos Delis (Contact Author)

Aston University - Aston Business School ( email )

Aston Triangle
Birmingham, B47ET
United Kingdom

HOME PAGE: http://www1.aston.ac.uk/aston-business-school/staff/academic/esg/dr-agelos-delis/

University of Nottingham - Nottingham Centre for Research on Globalisation and Economic Policy ( email )

School of Economics
University Park
Nottingham, NG7 2RD
United Kingdom

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
71
Abstract Views
760
Rank
696,549
PlumX Metrics