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Multinational Companies, Technology Spillovers and Plant Survival

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Author Info
Holger G–rg
Eric Strobl

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Abstract

How does the presence of multinational companies affect plant survival in the host country? We postulate that multinational companies can impact positively on plant survival through technology spillovers. We examine the nature of the effect of multinationals using a Cox proportional hazard model, which we estimate using plant-level data for Irish manufacturing industries. Our results show that the presence of multinationals has a life-enhancing effect only on indigenous plants in high-tech industries, suggesting the presence of technology spillovers. In contrast, multinationals compete with each other in low-tech sectors in the host country. Copyright The editors of the "Scandinavian Journal of Economics", 2003 .

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Article provided by Blackwell Publishing in its journal The Scandinavian Journal of Economics.

Volume (Year): 105 (2003)
Issue (Month): 4 (December)
Pages: 581-595
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Handle: RePEc:bla:scandj:v:105:y:2003:i:4:p:581-595

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  1. Mata, Jose & Portugal, Pedro, 1994. "Life Duration of New Firms," Journal of Industrial Economics, Blackwell Publishing, vol. 42(3), pages 227-45, September. [Downloadable!] (restricted)
  2. Glass, Amy Jocelyn & Saggi, Kamal, 1998. "International technology transfer and the technology gap," Journal of Development Economics, Elsevier, vol. 55(2), pages 369-398, April. [Downloadable!] (restricted)
  3. Kokko, Ari, 1994. "Technology, market characteristics, and spillovers," Journal of Development Economics, Elsevier, vol. 43(2), pages 279-293, April. [Downloadable!] (restricted)
  4. Görg, Holger & Strobl, Eric, 2002. "Multinational Companies and Indigenous Development: An Empirical Analysis," CEPR Discussion Papers 3325, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  5. Barry, F & Bradley, J, 1997. "FDI and Trade : The Irish Host-Country Experience," Papers 97/13, College Dublin, Department of Political Economy-.
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  6. Audretsch, David B & Mahmood, Talat, 1995. "New Firm Survival: New Results Using a Hazard Function," The Review of Economics and Statistics, MIT Press, vol. 77(1), pages 97-103, February. [Downloadable!] (restricted)
  7. Blomstrom, Magnus & Kokko, Ari, 1998. " Multinational Corporations and Spillovers," Journal of Economic Surveys, Blackwell Publishing, vol. 12(3), pages 247-77, July. [Downloadable!] (restricted)
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  8. Ari Kokko & Ruben Tansini & Mario Zejan, 1994. "Productivity spillovers from FDI in the Uruguayan manufacturing sector," Documentos de Trabajo (working papers) 0194, Department of Economics - dECON. [Downloadable!]
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  9. Mata, Jose & Portugal, Pedro & Guimaraes, Paulo, 1995. "The survival of new plants: Start-up conditions and post-entry evolution," International Journal of Industrial Organization, Elsevier, vol. 13(4), pages 459-481, December. [Downloadable!] (restricted)
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  10. Girma, Sourafel & Greenaway, David & Wakelin, Katharine, 2001. "Who Benefits from Foreign Direct Investment in the UK?," Scottish Journal of Political Economy, Scottish Economic Society, vol. 48(2), pages 119-33, May. [Downloadable!] (restricted)
  11. Gorg, Holger & Strobl, Eric, 2001. "Multinational Companies and Productivity Spillovers: A Meta-analysis," Economic Journal, Royal Economic Society, vol. 111(475), pages F723-39, November. [Downloadable!] (restricted)
  12. Salvador Barrios, . "Foreign Direct Investment and Productivity Spillovers," Working Papers 2000-19, FEDEA. [Downloadable!]
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