Gifted Kids or Pushy Parents ? Foreign Acquisitions and Plant Performance in Indonesia

@inproceedings{Arnold2005GiftedKO,
  title={Gifted Kids or Pushy Parents ? Foreign Acquisitions and Plant Performance in Indonesia},
  author={Jens Matthias Arnold and Beata Smarzynska Javorcik},
  year={2005}
}
  • Jens Matthias Arnold, Beata Smarzynska Javorcik
  • Published 2005
This paper uses micro data from the Indonesian Census of Manufacturing to analyze the causal relationship between foreign ownership and plant productivity. To control for the possible endogeneity of the FDI decision, a difference-in-differences approach is combined with propensity score matching. An advantage of this method, which has not been previously applied in this context, is the ability to follow the timing of observed changes in productivity and other aspects of plant performance. The… CONTINUE READING
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