FDI and superstar spillovers: evidence from firm-to-firm transactions

Mary Amiti, Cedric Duprez, Jozef Konings and John van Reenen

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: Using firm-to-firm transactions, we show that starting to supply a "superstar" firm (large domestic firms, exporters and multinationals) boosts productivity by 8% in the medium-run. Placebos on starting relationships with smaller firms and novel identification strategies support a causal interpretation of "superstar spillovers". Consistent with a model of technology transfer, we find falls in markups and bigger treatment effects from technology-intensive superstars. We also show that the increase in new buyers is particularly strong within the superstar firm's network, a "dating agency" effect. This suggests an important role for raising productivity through superstars' supply chains regardless of their multinational status.

Keywords: productivity; FDI; spillovers (search for similar items in EconPapers)
JEL-codes: F21 F23 O30 (search for similar items in EconPapers)
Pages: 79 pages
Date: 2023-04-21
New Economics Papers: this item is included in nep-bec, nep-cse, nep-eff, nep-int and nep-sbm
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Downloads: (external link)
http://eprints.lse.ac.uk/121331/ Open access version. (application/pdf)

Related works:
Journal Article: FDI and superstar spillovers: Evidence from firm-to-firm transactions (2024)
Working Paper: FDI and superstar spillovers: evidence from firm-to-firm transactions (2024)
Working Paper: FDI and superstar spillovers: evidence from firm-to-firm transactions (2023)
Working Paper: FDI and superstar spillovers: Evidence from firm-to-firm transactions (2023)
Working Paper: FDI and Superstar Spillovers: Evidence from firm-to-firm transactions (2023)
Working Paper: FDI and superstar spillovers: Evidence from firm-to-firm transactions (2023)
Working Paper: FDI and Superstar Spillovers: Evidence from Firm-to-Firm Transactions (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:121331

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