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Accounting for Cross-Country Productivity Differences: New Evidence from Multinational Firms

Vanessa Alviarez, Javier Cravino () and Natalia Ramondo
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Natalia Ramondo: UCSD

No 1188, 2019 Meeting Papers from Society for Economic Dynamics

Abstract: We use data on the cross-country operations of multinational enterprises and their foreign affiliates to separate the components of productivity that are internationally mobile from those that are immobile. We show that the productivity factors that are embedded in firms and can be transferred globally account for about 20 percent of the observed differences in TFP across European countries, thought its importance varies widely across countries. This indicates large potential gains form convergence in `firm-embedded' productivity.

Date: 2019
New Economics Papers: this item is included in nep-cse, nep-eff and nep-int
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