MULTINATIONALS’ PRODUCTIVITY ADVANTAGE: SCALE OR TECHNOLOGY? |
| |
| Authors: | SOURAFEL GIRMA HOLGER GÖRG |
| |
| Institution: | Girma:;Associate Professor/Reader, Nottingham University Business School, University of Nottingham, Jubilee Campus, Nottingham NG8 1BB, UK. Phone 44-115-8466656, Fax 44-115-8466667, E-mail Görg:;Associate Professor/Reader, Leverhulme Centre for Research on Globalisation and Economic Policy, and School of Economics, University of Nottingham, Nottingham NG7 2RD, UK. Phone 44-115-8466393, Fax 44-115-9514159, E-mail |
| |
| Abstract: | This study decomposes the productivity advantage of foreign multinationals into a technology and a scale effect and analyses the causal relationship between foreign ownership and these two components. This is done by analyzing the effects of an acquisition of a domestic establishment by a foreign multinational, using a combined propensity score matching and difference-in-differences estimation. The main results show that any positive impact of acquisition is predominantly due to changes in technical efficiency and not in scale and that the preacquisition productivity of the target plays a role in mediating the rate of technology transfer from the multinational. ( JEL F23, L22) |
| |
| Keywords: | |
|
|
