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Foreign Takeovers and Wages: Theory and Evidence from Hungary AgEcon
Csengodi, Sandor; Jungnickel, Rolf; Urban, Dieter.
This study discriminates FDI technology spillover from learning effects. Whenever learning takes time, our model predicts that foreign investors deduct the economic value of learning from wages of inexperienced workers and add it to experienced ones to prevent them from moving to local competitors. Hence, the national wage bill is unaffected by foreign takeovers. In contrast to learning, technology spillover effects occur whenever a worker with MNE experience contributes more to local firms' than to MNEs' productivity. In this case, experienced MNE workers are hired by local firms and the host country obtains a welfare gain. We investigate empirically wages, productivity, and worker turnover during the course of foreign takeovers on employee-employer...
Tipo: Working or Discussion Paper Palavras-chave: FDI; Foreign takeover; Cross-border M&A; Wage regression; Employee-employer matched data; Propensity score matching; FDI technology spillover; International Relations/Trade; Labor and Human Capital; F2; J3.
Ano: 2005 URL: http://purl.umn.edu/26278
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Divergence - Is it Geography? AgEcon
Straubhaar, Thomas; Suhrcke, Marc; Urban, Dieter.
This paper tests a geography and growth model using regional data for Europe, the US, and Japan. We set up a standard geography and growth model with a poverty trap and derive a log-linearized growth equation that corresponds directly to a threshold regression technique in econometrics. In particular, we test whether regions with high population density (centers) grow faster and have a permanently higher per capita income than regions with low population density (peripheries). We find geography driven divergence for US states and European regions after 1980. Population density is superior in explaining divergence compared to initial income which the most important official EU eligibility criterium for regional aid is built on. Divergence is stronger on...
Tipo: Working or Discussion Paper Palavras-chave: Threshold estimation; New economic geography; Regional income; Growth; Poverty trap; Regime shifts; Bootstrap; International Development; O41; R11; F12.
Ano: 2002 URL: http://purl.umn.edu/26350
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