MULTINATIONALS’ PRODUCTIVITY ADVANTAGE: SCALE OR TECHNOLOGY?

Sourafel Girma and Holger Görg

Chapter 1 in Multinational Enterprises and Host Country Development, 2016, pp 3-15 from World Scientific Publishing Co. Pte. Ltd.

Abstract: This study decomposes the productivity advantage of foreign multinationals into a technology and a scale effect and analyses the causal relationship between foreign ownership and these two components. This is done by analyzing the effects of an acquisition of a domestic establishment by a foreign multinational, using a combined propensity score matching and difference-in-differences estimation. The main results show that any positive impact of acquisition is predominantly due to changes in technical efficiency and not in scale and that the preacquisition productivity of the target plays a role in mediating the rate of technology transfer from the multinational.

Keywords: Multinational Enterprises; Foreign Direct Investment; Spillovers; Development; Host Country (search for similar items in EconPapers)
Date: 2016
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Related works:
Journal Article: MULTINATIONALS’ PRODUCTIVITY ADVANTAGE: SCALE OR TECHNOLOGY? (2007)
Working Paper: Multinationals' Productivity Advantage: Scale or Technology (2006)
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