Multinational Enterprises, International Trade, and Productivity Growth: Firm-Level Evidence From the United States

Stephen Yeaple and Wolfgang Keller

No 2003/248, IMF Working Papers from International Monetary Fund

Abstract: We estimate international technology spillovers to U.S. manufacturing firms via imports and foreign direct investment (FDI) between 1987 and 1996. In contrast to earlier work, our results suggest that FDI leads to substantial productivity gains for domestic firms. The size of FDI spillovers is economically important, accounting for about 11 percent of productivity growth in U.S. firms between 1987 and 1996. In addition, there is some evidence for import-related spillovers, but it is weaker than for FDI spillovers. The paper also gives a detailed account of why our study leads to results different from those found in previous work. This analysis indicates that our results are also likely to apply to other countries and periods.

Keywords: WP; FDI spillover; TFP growth; market share; Foreign direct investment; technology transfer; technology spillovers; international trade; firm hire; spillover effect; productivity difference; FDI share; FDI variable; TFP measure; FDI activity; industry FDI; FDI growth; unobserved industry characteristic; Imports; Total factor productivity; Productivity; Spillovers (search for similar items in EconPapers)
Pages: 40
Date: 2003-12-01
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Citations: View citations in EconPapers (165)

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Related works:
Journal Article: Multinational Enterprises, International Trade, and Productivity Growth: Firm-Level Evidence from the United States (2009)
Working Paper: Multinational enterprises international trade, and productivity growth: Firm-level evidence from the United States (2005)
Working Paper: Multinational Enterprises, International Trade, and Productivity Growth: Firm-Level Evidence from the United States (2004)
Working Paper: Multinational Enterprises, International Trade, and Productivity Growth: Firm-Level Evidence from the United States (2003)
Working Paper: Multinational Enterprises, International Trade, and Productivity Growth: Firm-Level Evidence from the United States (2003)
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