TY  - JOUR
AU  - Lipsey,Robert E.
AU  - Feliciano,Zadia
TI  - Foreign Entry into U.S. Manufacturing by Takeovers and the Creation of New Firms
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 9122
PY  - 2002
Y2  - August 2002
UR  - http://www.nber.org/papers/w9122
L1  - http://www.nber.org/papers/w9122.pdf
N1  - Author contact info:
Robert E. Lipsey
NBER
365 Fifth Avenue, Suite 5318
New York, NY 10016-4309
Tel: 212/817-7961
Fax: 212/817-1597
E-Mail: N/A user is deceased

Zadia Feliciano
National Bureau of Economic Research
365 Fifth Avenue, 5th Floor
New York, NY 10016-4309
Tel: (212) 817-7955
Fax: (212) 817-1597
E-Mail: zadia.feliciano@qc.cuny.edu
AB  - Using U.S. Bureau of Economic Analysis data for individual foreign acquisitions and new establishments in the U.S from 1988 to 1998, and aggregate data for 1980 to 1998, we find that acquisitions and establishments of new firms tend to occur in periods of high U.S. growth and  take place mainly in industries in which the investing country has some comparative advantage in exporting.  New establishments are largely in industries of U.S. comparative disadvantage, and the relation of U.S. comparative advantage to takeovers is also negative, but never significant. High U.S. stock prices, industry profitability, and industry growth discourage takeovers.  High U.S interest rates and high investing country growth and currency values encourage takeovers. Direct  investments in acquisitions and new establishments thus tend to flow in the same direction as trade.  They originate in countries with comparative advantages in particular industries and flow to industries of U.S. comparative disadvantage.
ER  -