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Multinational Companies, Technology Spillovers and Plant Survival

Holger G–rg and Eric Strobl ()

Scandinavian Journal of Economics, 2003, vol. 105, issue 4, 581-595

Abstract: How does the presence of multinational companies affect plant survival in the host country? We postulate that multinational companies can impact positively on plant survival through technology spillovers. We examine the nature of the effect of multinationals using a Cox proportional hazard model, which we estimate using plant-level data for Irish manufacturing industries. Our results show that the presence of multinationals has a life-enhancing effect only on indigenous plants in high-tech industries, suggesting the presence of technology spillovers. In contrast, multinationals compete with each other in low-tech sectors in the host country. Copyright The editors of the "Scandinavian Journal of Economics", 2003 .

Date: 2003
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Scandinavian Journal of Economics is currently edited by Richard Friberg, Matti Liski and Kjetil Storesletten

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