Acquisition FDI and the Export Intensity of Multinational Firms

University of Nottingham Research Paper No. 2005/01

28 Pages Posted: 9 Sep 2005

See all articles by Sourafel Girma

Sourafel Girma

Nottingham University Business School

Richard Kneller

University of Nottingham

Mauro Pisu

OECD; Leverhulme Centre for Research on Globalisation and Economic Policy; National Bank of Belgium

Abstract

This paper investigates the impact of acquisition FDI on exporting intensity in UK manufacturing. A quasi-likelihood estimation method is used, and the empirical estimates point to the following conclusions: (i) UK firms with higher exporting intensity are more likely to be foreign takeover targets; (ii) US acquired firms increase their exporting intensity, consistent with the idea that acquisition FDI is used as a platform for serving the wider EU market (iii) Firms acquired by European multinationals significantly decrease their export-orientation, suggesting targeting of the domestic market post-takeover; (iv) The exporting propensity of non-US and non-EU multinationals exhibits no significant change.

Keywords: Foreign Direct Investment, acquisitons, exports

JEL Classification: F14, F23

Suggested Citation

Girma, Sourafel and Kneller, Richard and Pisu, Mauro, Acquisition FDI and the Export Intensity of Multinational Firms. University of Nottingham Research Paper No. 2005/01 . Available at SSRN: https://ssrn.com/abstract=764405 or http://dx.doi.org/10.2139/ssrn.764405

Sourafel Girma

Nottingham University Business School ( email )

Jubilee Campus
Nottingham, NG8 1BB
United Kingdom
+44 0 115 8466656 (Phone)

HOME PAGE: http://www.nottingham.ac.uk/~lizsmg/

Richard Kneller (Contact Author)

University of Nottingham ( email )

University Park
Nottingham, NG8 1BB
United Kingdom

Mauro Pisu

OECD ( email )

2 rue Andre Pascal
Paris Cedex 16, 75775
France

Leverhulme Centre for Research on Globalisation and Economic Policy ( email )

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

National Bank of Belgium ( email )

Research Department
Boulevard de Berlaimont 14
Brussels, 1000
Belgium

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