Multinationals and US Productivity Leadership: Evidence from Great Britain
Abstract
We study the productivity of US owned plants in the UK. Using a new dataset that identifies foreign and domestic MNEs, we find that UK MNEs are less productive than US affiliates, but as productive as non US foreign affiliates. We investigate the source of the US and MNE advantage. We find evidence confirming that the MNE advantage is driven by sharing superior firm level assets across plants and by cherry picking the better plants in a country. The additional superiority of US firms seems entirely driven by their particular ability to takeover the best British plants. Thirdly, the study features a novel approach to TFP calculation.Download Info
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Paper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number dp0672.Length:
Date of creation: Jan 2005
Date of revision:
Handle: RePEc:cep:cepdps:dp0672
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Web page: http://cep.lse.ac.uk/_new/publications/series.asp?prog=CEP
Related research
Keywords: Multinational Firms; Productivity; Foreign Ownership; US leadership; Double Fixed-Effects;Other versions of this item:
- Chiara Criscuolo & Ralf Martin, 2009. "Multinationals and U.S. Productivity Leadership: Evidence from Great Britain," The Review of Economics and Statistics, MIT Press, vol. 91(2), pages 263-281, May.
- Chiara Criscuolo & Ralf Martin, 2004. "Multinationals and U.S. Productivity Leadership: Evidence from Great Britain," OECD Science, Technology and Industry Working Papers 2004/5, OECD Publishing.
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-12-01 (All new papers)
- NEP-EEC-2005-12-01 (European Economics)
- NEP-EFF-2005-12-01 (Efficiency & Productivity)
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