Suppliers of multinationals and the forced linkage effect: Evidence from firm level data

Görg, Holger and Olivier Godart
Authors registered in the RePEc Author Service: Holger Görg

No 9324, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: Using information on more than 1000 firms in a number of emerging countries, we find quantitative evidence that suppliers of multinationals that are pressured by their customers to reduce production costs or develop new products have higher productivity growth than other firms, including other host country suppliers of multinationals. These findings provide first empirical support for a ?forced linkage effect? from supplying multinational companies. Our findings hold controlling for other factors within and outside the supplier- customer relationship and when endogeneity concerns are taken into consideration.

Keywords: Backward linkages; Forced linkage; Multinational customers; Productivity spillovers; Suppliers (search for similar items in EconPapers)
JEL-codes: F23 O12 (search for similar items in EconPapers)
Date: 2013-01
New Economics Papers: this item is included in nep-bec and nep-eff
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (21)

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Related works:
Journal Article: Suppliers of multinationals and the forced linkage effect: Evidence from firm level data (2013)
Working Paper: Suppliers of Multinationals and the Forced Linkage Effect: Evidence from Firm Level Data (2013)
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