The Effect of Foreign Acquisition on Firm-Level Productivity: A Literature Survey

Abstract

One important aspect of globalization is the cross-border flow of capital, namely foreign direct investment that is considered to be an important engine of economic growth via productivity enhancement. One important form of foreign direct investment is cross-border mergers and acquisitions (M&As). The effect of M&As on firm-level productivity has been analyzed in many papers. This article provides a survey of this literature following a kind of evolutionary perspective:The main results are presented following advances in data usage and methodology. Further research questions are also formulated.
JEL code:F21, F43