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Foreign acquisition and R&D activities: evidence from a small open economy

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  • Hoyong Jung

Abstract

This paper examines the effect of the foreign acquisition on domestic firms’ R&D activities using a firm-level dataset. We exploit a rich dataset of South Korea, which is a representative small open economy. We find that foreign takeover leads to increased R&D expenditures, which are more outsourced. The effect stood out after the global financial crisis, for listed companies and companies that rely on trade.

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  • Hoyong Jung, 2021. "Foreign acquisition and R&D activities: evidence from a small open economy," Applied Economics Letters, Taylor & Francis Journals, vol. 28(20), pages 1732-1737, November.
    • Handle: RePEc:taf:apeclt:v:28:y:2021:i:20:p:1732-1737
    DOI: 10.1080/13504851.2020.1853662
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