Productivity convergence and foreign ownership at the establishment level

Rachel Griffith, Helen Simpson and Stephen Redding

No W02/22, IFS Working Papers from Institute for Fiscal Studies

Abstract: This paper investigates whether there is convergence in Total Factor Productivity towards the technological frontier at the establishment level. We find convergence to the frontier is statistically and quatatively important, suggesting the existence of technology spillovers. Foreign multinationals make up a significant proportion of establishments at the technological frontier, and therefore make a contribution to productivity growth through technology transfer. We also find evidence that increased foreign presence within an industry raises the speed of convergence to the technological frontier.

Keywords: Foreign Direct Investment (FDI); knowledge spillovers; competition (search for similar items in EconPapers)
JEL-codes: F23 O33 O47 (search for similar items in EconPapers)
Pages: 35
Date: 2002-12-01
New Economics Papers: this item is included in nep-dev, nep-ifn and nep-pke
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Citations: View citations in EconPapers (73)

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Related works:
Working Paper: Productivity Convergence and Foreign Ownership at the Establishment Level (2003)
Working Paper: Productivity convergence and foreign ownership at the establishment level (2003)
Working Paper: Productivity Convergence and Foreign Ownership at the Establishment Level (2002)
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