Multinational firms and FDI destinations: what explains the productivity gap?

Mara Grasseni and Simona Comi

Economics Bulletin, 2013, vol. 33, issue 1, 721-728

Abstract: This paper deals with the issue of the heterogeneity of productivity among three different groups of multinational firms according to where they invest. We use the procedure developed by Di Nardo et al (1996) and Melly (2005) to decompose the productivity gap across the entire productivity distribution in order to account for the relative importance of observed characteristics versus different returns. We find that the productivity gap suffered by firms that invest only in less developed countries is due to lower efficiency, not to worse characteristics. The most productive firms are those able to invest in both developed and less developed countries. They outperform firms investing only in one geographical area because of their better characteristics.

Keywords: multinational firms; total factor productivity; decomposition (search for similar items in EconPapers)
JEL-codes: F2 (search for similar items in EconPapers)
Date: 2013-03-13
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.accessecon.com/Pubs/EB/2013/Volume33/EB-13-V33-I1-P69.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-12-00769

Access Statistics for this article

More articles in Economics Bulletin from AccessEcon
Bibliographic data for series maintained by John P. Conley ().