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Internationalized Production in World Output

In: Geography and Ownership as Bases for Economic Accounting

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  • Robert E. Lipsey
  • Magnus Blomstrom
  • Eric D. Ramstetter

Abstract

Internationalized production, that is, production by multinational firms outside their home countries has increased over the last two decades, but it was still, in 1990, only about 7 per cent of world output. The share was higher, at 15 per cent in "industry", including manufacturing, trade, construction, and public utilities, but it was negligible in "services", which are about 60 per cent of world output. Given all the attention that "globalization" has received from scholars, international organizations, and the press, these numbers are a reminder of how large a proportion of economic activity is confined to single geographical locations and home country ownership. Internationalization of production is clearly growing in importance, but the vast majority of production is still carried out by national producers within their own borders.

(This abstract was borrowed from another version of this item.)

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This chapter was published in:

  • Robert E. Baldwin & Robert E. Lipsey & J. David Richards, 1998. "Geography and Ownership as Bases for Economic Accounting," NBER Books, National Bureau of Economic Research, Inc, number bald98-1, October.
    This item is provided by National Bureau of Economic Research, Inc in its series NBER Chapters with number 6818.

    Handle: RePEc:nbr:nberch:6818

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