FDI and superstar spillovers: Evidence from firm-to-firm transactions

Mary Amiti, Cedric Duprez, Jozef Konings and John van Reenen

POID Working Papers from Centre for Economic Performance, LSE

Abstract: Using firm-to-firm transactions, we show that starting to supply a 'superstar' firm (large domestic firms, exporters, and multinationals) boosts productivity by 8% in the medium run. Placebos on starting relationships with smaller firms and novel identification strategies support a causal interpretation of "superstar spillovers". Consistent with a model of technology transfer, we find falls in markups and bigger treatment effects from technology intensive superstars. We also show that the increase in new buyers is particularly strong within the superstar firm's network, a "dating agency" effect. This suggests an important role for raising productivity through superstars' supply chains regardless of their multinational status.

Keywords: productivity; FDI; spillovers (search for similar items in EconPapers)
Date: 2023-04-27
New Economics Papers: this item is included in nep-bec, nep-cse, nep-eff, nep-int, nep-net and nep-sbm
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https://poid.lse.ac.uk/textonly/publications/downloads/poidwp070_updated.pdf (application/pdf)

Related works:
Working Paper: FDI and superstar spillovers: evidence from firm-to-firm transactions (2023)
Working Paper: FDI and Superstar Spillovers: Evidence from firm-to-firm transactions (2023)
Working Paper: FDI and superstar spillovers: evidence from firm-to-firm transactions (2023)
Working Paper: FDI and superstar spillovers: Evidence from firm-to-firm transactions (2023)
Working Paper: FDI and Superstar Spillovers: Evidence from Firm-to-Firm Transactions (2023)
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