Multinationals and US Productivity Leadership: Evidence from Great Britain

Chiara Criscuolo and Ralf Martin

CEP Discussion Papers from Centre for Economic Performance, LSE

Abstract: We study the productivity of US owned plants in the UK. Using a new dataset that identifies foreign and domestic MNEs, we find that UK MNEs are less productive than US affiliates, but as productive as non US foreign affiliates. We investigate the source of the US and MNE advantage. We find evidence confirming that the MNE advantage is driven by sharing superior firm level assets across plants and by cherry picking the better plants in a country. The additional superiority of US firms seems entirely driven by their particular ability to takeover the best British plants. Thirdly, the study features a novel approach to TFP calculation.

Keywords: Multinational Firms; Productivity; Foreign Ownership; US leadership; Double Fixed-Effects (search for similar items in EconPapers)
JEL-codes: F23 L60 (search for similar items in EconPapers)
Date: 2005-01
New Economics Papers: this item is included in nep-eec and nep-eff
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Citations: View citations in EconPapers (37)

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Related works:
Working Paper: Multinationals and US productivity leadership: evidence from Great Britain (2005)
Working Paper: Multinationals and U.S. Productivity Leadership: Evidence from Great Britain (2004)
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Persistent link: https://EconPapers.repec.org/RePEc:cep:cepdps:dp0672

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