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This paper examines the recent upsurge in foreign direct investment by emerging-market firms into the United States. Traditionally, direct investment flowed from developed to developing countries, bringing with it superior technology, organizational capital, and access to international capital markets, yet increasingly there is a trend towards "Capital flowing uphill" with emerging market investors acquiring a broad range of assets in developed countries. Using transaction-specific information and firm-level accounting data the authors evaluate the operating performance of publicly traded U.S. firms that have been acquired by firms from emerging markets over the period 1980-2007. The empirical methodology uses a difference-in-differences approach combined with propensity score matching to create an appropriate control group of non-acquired firms.
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