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

Olivier N. Godart and Holger Görg

Chapter 15 in Multinational Enterprises and Host Country Development, 2016, pp 277-288 from World Scientific Publishing Co. Pte. Ltd.

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 emplrical support for a “forced llnbge 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: 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: 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)
Working Paper: 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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