University of Groningen
Essays on entrepreneurship, worker mobility and firm performance
Abolhassani, Marzieh
DOI:
10.33612/diss.100589231
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Publication date: 2019
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Abolhassani, M. (2019). Essays on entrepreneurship, worker mobility and firm performance. University of Groningen, SOM research school. https://doi.org/10.33612/diss.100589231
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Essays on Entrepeneurship, Worker Mobility and
Firm Performance
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Publisher: University of Groningen, Groningen, The Netherlands Printer: Ipskamp Printing
ISBN: 978-94-034-2142-1 eISBN: 978-94-034-2141-4
c
2019 M. Abolhassani
All rights reserved. No part of this publication may be reproduced, stored in a re-trieval system of any nature, or transmitted in any form or by any means, electronic, mechanical, now known or hereafter invented, including photocopying or recording, without prior written permission of the publisher.
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Essays on Entrepeneurship, Worker Mobility and
Firm Performance
PhD thesis
to obtain the degree of PhD at the University of Groningen
on the authority of the Rector Magnificus Prof. C. Wijmenga
and in accordance with the decision by the College of Deans. This thesis will be defended in public on Thursday 14 November 2019 at 11:00 hours
by
Marzieh Abolhassani
born on 06 May 1975 in Teheran, Iran
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Supervisor Prof. J. de Haan Co-supervisor Dr. A. Minasyan Assessment committee Prof. J. Oehmichen Prof. Y-W. Cheung Prof. A. E. Szirmai
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You can never do more than what you believe you can do, but your ability is more than what you believe.
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iv
Life is a journey full of adventures. I have completed now the PhD adventure dur-ing my journey in the world of academia which I could not have accomplished without the support of many. I would like to take this opportunity to express my gratitude for all who supported me along the way.
First and foremost, I am greatly indebted to my promotor, Professor Jakob de Haan. I thank you for helping and guiding me in my work in the midst of scientific challenges during this project. I am also so grateful for your cooperation on the last chapter of the thesis and your valuable feedback on the other chapters as well as your great advice during revision of chapter two. I have learned so much from you and I hope for more collaboration in the future.
In addition, I also owe a great debt of gratitude to Anna Minasyan who not only was my supervisor but also a good friend. Thank you for the fruitful discussions and your advice. I could not have wished for better supervisors than you and Jakob.
Furthermore, I would like to thank my committee members, Professors Jana Oehmichen, Yin-Wong Cheung and Ed Szirmai. I feel very privileged to have such distinguished academics in my committee. I appreciate your comments, questions, and suggestions which have certainly improved the essays in this dissertation.
I would like to acknowledge my former colleagues, Dirk-Jan Janssen, Eefje de Gelder, Jan Verhoeckx, Job Andreoli, Herman van Brenk, Rob Blomen and René Orij and many others for their wonderful support and interesting conversations. Special thanks go to Professor Rob Alessie, Kadek Dian and Shu Yu for their infinite support and also introducing me to Jakob. I would also like to thank Seçil Danakol, my coau-thor in chapter two for her cooperation and especially for all the interesting and funny talks that we had during the revision which made revising the paper such a fun job. Furthermore, I would like to extend a special thanks to all my new colleagues at GEM and especially my dear paranymphs, Andrea Kuiken and Romina Guri. I sincerely thank the entire SOM staff and the secretaries of GEM for their support. In addition, I would like to thank the CBS (Centraal Bureau voor de Statistiek/ Statistics
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v lands) for providing data and being supportive in many ways, with special thanks to Ruurd Schoonhoven and Martin Broxterman.
My PhD life has also been endowed with so many good friends, Farzaneh and Yadi, Manicheh Matin, Vaiva Petrikeite, Elisa, Mohsen and Mina Sabery, Nel and Pe-ter, Habibeh, Arvid, Eni Becker and many others whose names are not here. Special thanks go to my best friends Niaz Bashiri and Mahsa Ilkhani (who is also my cousin) for always being there for me and unconditional support. Thank you for patiently lis-tening to all my nagging and giving me advice like a big sister, although you are both younger than me.
My greatest strength and inspiration is my family. I am forever indebted to my mother, all my siblings, brothers and sisters in laws (in both the Abolhassani and Van Santen families) for tremendous faith in me and their support during these years. My mother has always encouraged me in my choices in education and career, although she must have been worried about the amount of work and dedication which I have always expressed to my studies and work. Thanks for shaping me into the way I am and for that support. And of course, my late father who always stimulated me to ac-quire knowledge since I was just a very small girl and my late brother Majid, who was one of my first lecturers and my first link to the scientific world. You both always had faith in me and are dearly missed on this occasion. This thesis is dedicated to you both and mom!
In addition, I would like to thank my parents in law, Cor (who I am proud to call ‘papa’) and Hansje for their wise counseling and sympathetic ear. Thanks for always being there for me and your interest in my work and well-being.
Finally, out of my heart, I owe my deepest and dearest thanks to my beloved hus-band and my best friend Peter and our lovely daughter Kiana. Your love and presence have provided amusement and pleasant moments but also shoulders to share bad mo-ments during these years. You have reminded me of life outside the world of research and brought a lot of happiness and sense into my life. Your love and unconditional
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support has given me the strength and belief to accomplish this work and to feel proud of you and myself.
Marzieh Abolhassani Maarssen, September 2019
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Contents
1 Introduction 1
1.1 Introduction . . . 2
1.1.1 Chapter 2: Wage and Competition Channels of Foreign Direct Investment and New Firm Entry . . . 4
1.1.2 Chapter 3: Productivity spillovers of FDI through worker mobility 6 1.1.3 Chapter 4: Productivity spillovers of high-productivity firms through worker mobility . . . 7
1.1.4 Chapter 5: How does government control affect firm value? New evidence for China . . . 8
2 Wage and Competition Channels of Foreign Direct Investment and New Firm Entry 11 2.1 Introduction . . . 12
2.2 Theoretical Background and Hypotheses . . . 16
2.2.1 Competition Effects of FDI and New Firm Entry . . . 16
2.2.2 Wage Effects of FDI and New Firm Entry . . . 19
2.2.3 Direct Effects of FDI on New Firm Entry . . . 22
2.3 Data and Methodology . . . 24
2.3.1 Data Sources . . . 24
2.3.2 Variables . . . 25
2.3.3 Methodology . . . 27
2.3.4 Descriptive Statistics . . . 31
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viii Contents
2.5 Conclusions and Discussion . . . 37
2.5.1 Implications for Theory . . . 41
2.5.2 Policy Implications . . . 41
2.5.3 Limitations . . . 43
2.5.4 Future Research . . . 44
2.A Concentration-Competition Link . . . 46
2.B Data . . . 47
2.C Robustness Analyses . . . 47
2.C.1 Excluding One-(wo)man Firms . . . 47
2.C.2 High vs. Low Technology Industries . . . 48
2.D Economic Significance . . . 52
2.E Dutch Manufacturing . . . 53
3 Productivity Spillovers of Multinational Enterprises through Worker Mobil-ity: New Evidence for the Netherlands 55 3.1 Introduction . . . 56
3.2 Literature review . . . 59
3.3 Data and Methodology . . . 61
3.3.1 Data Sources . . . 61
3.3.2 Methodological Approach . . . 62
3.3.3 Descriptive Analysis . . . 65
3.4 Empirical Results . . . 67
3.5 Conclusions . . . 70
3.A Data Description . . . 73
4 Productivity Spillovers of High-productivity Firms through Worker Mobility 77 4.1 Introduction . . . 78
4.2 Literature review . . . 79
4.3 Data and Methodology . . . 82
4.3.1 Data . . . 82
4.3.2 Methodological Approach . . . 84
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Contents ix
4.5 Results . . . 92
4.6 Conclusions . . . 96
4.A Data Description . . . 98
5 How does government control affect firm value? New evidence for China 101 5.1 Introduction . . . 102
5.2 Literature Review . . . 104
5.3 Research Method and Data . . . 107
5.3.1 Data . . . 107
5.3.2 Descriptive statistics . . . 108
5.3.3 Modeling financial performance . . . 110
5.4 Results . . . 112
5.4.1 Main findings . . . 112
5.4.2 Quantile regression estimates . . . 114
5.4.3 Robustness Checks . . . 116
5.5 Conclusion . . . 119
5.A Data . . . 120
5.B Definition of Concentration of Control . . . 120
5.C Special Economic Zones . . . 121
6 Conclusion 123
7 Samenvatting (Dutch Summary) 133
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List of Tables
2.1 Summary Statistics . . . 31
2.2 Pearson Pairwise Correlation Coefficients . . . 33
2.3 3SLS Results . . . 35
2.B.1 Variables: Descriptions and Data Sources . . . 47
2.C.13SLS Results . . . 49
2.C.2High-technology vs. Low-technology . . . 51
2.D.1Economic Significance . . . 53
2.E.1 Manufacturing Industries According to Technological Intensity . . . 54
3.1 Summary statistics for workers . . . 66
3.2 Pairwise correlation of main variables . . . 66
3.3 Hiring skilled workers from multinationals . . . 68
3.4 Large vs. small firms and young firms . . . 70
3.A.1Variables: Description and data sources . . . 73
3.A.2Summary statistics . . . 75
3.A.3Pairwise Correlation . . . 76
4.1 Summary Statistics for Workers . . . 89
4.2 Summary Statistics for Manufacturing Firms . . . 89
4.3 Summary Statistics . . . 91
4.4 Baseline Model . . . 93
4.5 Receiving Firm’s Productivity and the Productivity Gap . . . 94
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xii List of Tables
4.A.1Variables: Description and data sources . . . 98
4.A.2Pairwise Correlation . . . 99
5.1 Sample selection . . . 107
5.2 Concentration of control . . . 109
5.3 Summary Statistics . . . 109
5.4 Financial performance and government control . . . 113
5.5 Financial performance and central vs. local government control . . . 114
5.6 The effect of government control across the performance distribution . . 115
5.7 The effect of central and local government control across the perfor-mance distribution . . . 117
5.8 Dynamic Model . . . 118
5.9 Large firms vs. small firms . . . 118
5.A.1Definition of variables . . . 120
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List of Figures
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