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Bandick, Roger
Publications (10 of 10) Show all publications
Bandick, R., Goerg, H. & Karpaty, P. (2014). Foreign Acquisitions, Domestic Multinationals, and R&D. Scandinavian Journal of Economics, 116(4), 1091-1115
Open this publication in new window or tab >>Foreign Acquisitions, Domestic Multinationals, and R&D
2014 (English)In: Scandinavian Journal of Economics, ISSN 0347-0520, E-ISSN 1467-9442, Vol. 116, no 4, p. 1091-1115Article in journal (Refereed) Published
Abstract [en]

Our aim in this paper is to evaluate the causal effect of foreign acquisition on research and development (R&D) intensity in targeted domestic firms. We are able to distinguish domestic multinational enterprises (MNEs) and non-MNEs, which allows us to investigate the fear that the change in ownership of domestic MNEs to foreign MNEs leads to a reduction in R&D activity in the country. Overall, our results give no support to the fears that foreign acquisition of domestic firms leads to a relocation of R&D activity in Swedish MNEs. Rather, in this paper, we find robust evidence that foreign acquisitions lead to increasing R&D intensity in acquired domestic MNEs and non-MNEs.

Keywords
Foreign acquisitions; multinational firms; R&D
National Category
Economics
Research subject
Economics
Identifiers
urn:nbn:se:oru:diva-38240 (URN)10.1111/sjoe.12071 (DOI)000342739200007 ()2-s2.0-84902734029 (Scopus ID)
Available from: 2014-11-03 Created: 2014-10-30 Last updated: 2017-12-05Bibliographically approved
Bandick, R. (2014). Global activities and plant survival: the case of Sweden. In: Ferragina, A.M.; Taymaz, E.; Yilmaz, K. (Ed.), Innovation, globalization and firm dynamics: lessons for enterprise policy (pp. 309-328). London: Routledge, 128
Open this publication in new window or tab >>Global activities and plant survival: the case of Sweden
2014 (English)In: Innovation, globalization and firm dynamics: lessons for enterprise policy / [ed] Ferragina, A.M.; Taymaz, E.; Yilmaz, K., London: Routledge, 2014, Vol. 128, p. 309-328Chapter in book (Refereed)
Place, publisher, year, edition, pages
London: Routledge, 2014
Keywords
FOOTLOOSE MULTINATIONALS; PRODUCTIVITY; TRADE; GROWTH; ENTRY; FIRMS; EXIT; FDI
National Category
Economics and Business
Research subject
Economics
Identifiers
urn:nbn:se:oru:diva-37053 (URN)978-1-315-81630-2 (ISBN)978-0-415-83677-7 (ISBN)
Available from: 2014-09-25 Created: 2014-09-19 Last updated: 2019-03-25Bibliographically approved
Bandick, R. & Karpaty, P. (2011). Employment effects of foreign acquisition. International Review of Economics and Finance, 20(2), 211-224
Open this publication in new window or tab >>Employment effects of foreign acquisition
2011 (English)In: International Review of Economics and Finance, ISSN 1059-0560, E-ISSN 1873-8036, Vol. 20, no 2, p. 211-224Article in journal (Refereed) Published
Abstract [en]

This paper investigates the employment effects of. foreign acquisitions in acquired firms in Swedish manufacturing during the 1990s; a period characterized by a dramatic increase in foreign ownership. We find some evidence of positive employment effects in acquired firms and it seems that the employment of skilled labor increases more than that of less-skilled labor. Our results indicate that the positive employment effects are more pronounced in acquired non-MNEs than in Swedish MNEs. Furthermore, we observe shifts in skill intensities toward higher shares of skilled labor in non-MNEs taken over by foreign MNEs, but not in acquired Swedish MNEs.

Place, publisher, year, edition, pages
Elsevier, 2011
Keywords
Foreign acquisitions, Labor demand, Matching, Difference-in-difference, Multinational enterprises
National Category
Economics
Research subject
Economics
Identifiers
urn:nbn:se:oru:diva-17092 (URN)10.1016/j.iref.2010.06.001 (DOI)000288528800010 ()2-s2.0-79551681369 (Scopus ID)
Available from: 2011-09-06 Created: 2011-09-02 Last updated: 2018-05-03Bibliographically approved
Bandick, R. & Goerg, H. (2010). Foreign acquisition, plant survival, and employment growth. Canadian Journal of Economics, 43(2), 547-573
Open this publication in new window or tab >>Foreign acquisition, plant survival, and employment growth
2010 (English)In: Canadian Journal of Economics, ISSN 0008-4085, E-ISSN 1540-5982, Vol. 43, no 2, p. 547-573Article in journal (Refereed) Published
Abstract [en]

This paper analyzes the effect of foreign acquisition on survival and employment growth of targets using data on Swedish manufacturing plants. We separate targeted plants into those within Swedish MNEs, Swedish exporting non-MNEs, and purely domestic firms. The results, controlling for possible endogeneity of acquisition using IV and propensity score matching approaches suggest that acquisition by foreign owners increases the lifetime of the acquired plants only if the plant was an exporter. The effect is robust to controlling for domestic acquisitions and differs between horizontal and vertical acquisitions. We find robust positive employment growth effects only for exporters and only if the takeover is vertical.

National Category
Economics
Research subject
Economics
Identifiers
urn:nbn:se:oru:diva-12971 (URN)10.1111/j.1540-5982.2010.01583.x (DOI)000276922800007 ()
Available from: 2011-01-04 Created: 2011-01-03 Last updated: 2018-04-23Bibliographically approved
Bandick, R. & Hansson, P. (2009). Inward FDI and demand for skills in manufacturing firms in Sweden. Review of World Economics, 145(1), 111-131
Open this publication in new window or tab >>Inward FDI and demand for skills in manufacturing firms in Sweden
2009 (English)In: Review of World Economics, ISSN 1610-2878, E-ISSN 1610-2886, Vol. 145, no 1, p. 111-131Article in journal (Refereed) Published
Abstract [en]

We observe a substantial increase in foreign ownership in Sweden in the 1990s. Did that have any effect on relative demand for skilled labor? Has technology transfers-often associated with inward FDI-led to an increased demand for skills due to skilled-biased technical change? Are there any grounds for the concerns in the public Swedish debate that more skilled activities have been moved to other countries where the headquarters are located? Estimating relative labor demand at the firm level and using propensity score matching with difference-in-difference estimation, we obtain support for that relative demand for skilled labor tend to rise in non-multinationals (non-MNEs)-but not in multinationals (MNEs)-that become foreign-owned. Other interesting findings are that larger presence of foreign MNEs in an industry appears to have a positive impact on the relative demand for skills in Swedish MNEs within the same industry and that the elasticity of substitution between skilled and less-skilled labor seems to be lower in MNEs than in non-MNEs.

Keywords
Foreign ownership, Skill upgrading, Wage differentials
National Category
Economics
Research subject
Economics
Identifiers
urn:nbn:se:oru:diva-13340 (URN)10.1007/s10290-009-0002-9 (DOI)000265083800007 ()
Available from: 2011-01-12 Created: 2011-01-11 Last updated: 2017-12-11Bibliographically approved
Bandick, R. (2008). Multinationals, employment and wages: microeconomic evidence from Swedish manufacturing. (Doctoral dissertation). Örebro: Örebro universitet
Open this publication in new window or tab >>Multinationals, employment and wages: microeconomic evidence from Swedish manufacturing
2008 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

The aim of this thesis, consisting of four essays, is to study the effects of multinationals and inward FDI on employment and wage formation in Swedish manufacturing during the 1990s.

Paper [1] (co-authored with Patrik Karpaty) investigates the employment effects of foreign acquisitions in acquired firms in Swedish manufacturing during the 1990s. To handle likely endogeneity problems we evaluate the effects of foreign acquisitions on the targeted firms’ employment by combining propensity score matching with difference-in-difference estimation. We find some evidence of positive employment effects in firms taken over by foreigners and it seems that the employment of skilled labor increases more than that of less-skilled labor. Moreover, we examine whether the employment impact of foreign ownership differs between takeovers of Swedish MNEs and non-MNEs. Our results indicate that the positive employment effects only appear in acquired non-MNEs. Furthermore, we observe shifts in skill intensities toward higher shares of skilled labor in non-MNEs taken over by foreign MNEs, but not in acquired Swedish MNEs.

Paper [2] (co-authored with Pär Hansson) investigates whether the increased foreign ownership in Sweden in the 1990s have had any effects on relative demand for skilled labor. Estimating relative labor demand at the firm level and using propensity score matching with difference-in-difference estimation, we obtain support for relative demand for skilled labor tending to rise in non-multinationals (non-MNEs)  but not in multinationals (MNEs)  that become foreign owned. Other interesting findings are that a larger presence of foreign MNEs in an industry appears to have a positive impact on the relative demand for skills in Swedish MNEs within the same industry and that the elasticity of substitution between skilled and less-skilled labor seems to be lower in MNEs than in non-MNEs.

Paper [3] investigates whether MNEs are more likely than non-MNEs to close down their plants, due to their footloose character. The results from using a panel of all Swedish manufacturing plants over the period 1993 and 2002 suggest that MNE plants, and in particular Swedish MNE plants, have a higher probability of exiting the market than non-MNE plants. The outcome is robust controlling for other variables affecting the survival rates. Among non-MNE plants, the probabilities of exit are higher in non-exporting firms than in exporting firms. Moreover, the increased foreign presence in Swedish manufacturing seems, due to intensified competition, to have led to the higher exit rates of plants in non-exporting non-MNEs. Plants of globally engaged indigenous firms, such as plants of Swedish MNEs and exporting non-MNEs, appear, on the other hand, to have been unaffected by the increased foreign presence.

Paper [4] examines whether MNEs  Swedish MNEs and foreign-owned firms  pay higher wages than non-MNEs in manufacturing, controlling for firm heterogeneity and individual characteristics. In accordance with the idea that MNEs are superior in performance to other firms, I find that MNEs pay higher wages than non-MNEs, in particular for skilled labor. Yet the MNE wage premium is low; the average wages in MNEs are between 4-7 percent higher than in non-MNEs, while estimates at the individual level reduce the wage premium in MNEs to around 2-3 percent. Higher wages in foreign-owned firms may result from foreign acquisitions of high-wage firms. Alternatively, the acquired firms might have a more favorable wage growth than non-targeted domestically owned firms. My findings only lend support to the hypothesis that foreign firms select high-wage firms (especially non-MNEs) for acquisition.

Place, publisher, year, edition, pages
Örebro: Örebro universitet, 2008. p. 131
Series
Örebro Studies in Economics, ISSN 1651-8896 ; 15
Keywords
Foreign acquisitions, labor demand, matching, difference-in difference, multinational enterprises and survival analysis.
National Category
Economics
Research subject
Economics
Identifiers
urn:nbn:se:oru:diva-1751 (URN)978-91-7668-575-4 (ISBN)
Public defence
2008-02-15, Hörsal T, Teknikhuset, Örebro universitet, Fakultetsgatan 1, 701 82 Örebro, Örebro, 14:00
Opponent
Supervisors
Available from: 2008-01-24 Created: 2008-01-24 Last updated: 2017-10-18Bibliographically approved
Bandick, R. & Karpaty, P. (2007). Foreign acquisition and employment effects in Swedish manufacturing. Nottingham: University of Nottingham
Open this publication in new window or tab >>Foreign acquisition and employment effects in Swedish manufacturing
2007 (English)Report (Other academic)
Abstract [en]

This paper investigates the employment effects of foreign acquisitions in acquired firms in Swedish manufacturing during the 1990s, a period characterized by a dramatic increase in foreign ownership. To handle likely endogeneity problems, we evaluate the effects of foreign acquisitions on the targeted firms’ employment by combining propensity score matching with difference-in-difference estimation. We find some evidence of positive employment effects in firms taken over by foreigners and it seems that the employment of skilled labor increases more than the employment of less-skilled labor. Moreover, we examine whether the employment impact of foreign ownership differs between takeovers of Swedish MNEs and non-MNEs. Our results indicate that the positive employment effects only appear in acquired non-MNEs. Furthermore, we observe shifts in skill intensities toward higher shares of skilled labor in non-MNEs taken over by foreign MNEs but not in acquired Swedish MNEs.

Place, publisher, year, edition, pages
Nottingham: University of Nottingham, 2007. p. [28]
Series
Research paper series ; 35
National Category
Social Sciences Economics and Business
Research subject
Economics
Identifiers
urn:nbn:se:oru:diva-2892 (URN)
Available from: 2008-01-24 Created: 2008-01-24 Last updated: 2017-10-18Bibliographically approved
Bandick, R. (2007). Multinationals and plant survival in Swedish manufacturing. Nottingham: University of Nottingham
Open this publication in new window or tab >>Multinationals and plant survival in Swedish manufacturing
2007 (English)Report (Other academic)
Abstract [en]

Are multinational enterprises, MNEs, more likely than non-MNEs to close down their plants due to their footloose character? The results from using a panel of all Swedish manufacturing plants over the period 1993 and 2002 suggest that MNE plants, in particular Swedish MNE plants, have a higher probability of exiting the market than non-MNE plants. The outcome is robust controlling for other variables affecting the survival rates. Among non-MNE plants, the probabilities of exit are higher in non-exporting firms than in exporting firms. Moreover, the increased foreign presence in Swedish manufacturing seems to have led to higher exit rates of plants in non-exporting non-MNEs while plants of globally engaged indigenous firms appear to have been unaffected by the increased foreign presence.

Place, publisher, year, edition, pages
Nottingham: University of Nottingham, 2007. p. [22]
Series
Research paper series ; 31
National Category
Economics and Business
Research subject
Economics
Identifiers
urn:nbn:se:oru:diva-2894 (URN)
Available from: 2008-01-24 Created: 2008-01-24 Last updated: 2017-10-18Bibliographically approved
Bandick, R. & Hansson, P. Inward FDI and demand for skills in Sweden.
Open this publication in new window or tab >>Inward FDI and demand for skills in Sweden
(English)Manuscript (preprint) (Other academic)
National Category
Social Sciences Economics and Business
Research subject
Economics
Identifiers
urn:nbn:se:oru:diva-2893 (URN)
Available from: 2008-01-24 Created: 2008-01-24 Last updated: 2017-10-18Bibliographically approved
Bandick, R. Is it profitable to work for multinationals in Sweden?.
Open this publication in new window or tab >>Is it profitable to work for multinationals in Sweden?
(English)Manuscript (preprint) (Other academic)
National Category
Economics
Research subject
Economics
Identifiers
urn:nbn:se:oru:diva-2895 (URN)
Available from: 2008-01-24 Created: 2008-01-24 Last updated: 2017-10-18Bibliographically approved
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