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Productivity Convergence and Foreign Ownership at the Establishment Level

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  • Griffith, Rachel
  • Redding, Stephen J
  • Simpson, Helen

Abstract

This Paper investigates whether there is convergence in Total Factor Productivity towards the technological frontier at the establishment level. We find convergence to the frontier is statistically and quantitatively important, suggesting the existence of technology spillovers. Foreign multinationals make up a significant proportion of establishments at the technological frontier, and therefore make a contribution to productivity growth through technology transfer. We also find evidence that increased foreign presence within an industry raises the speed of convergence to the technological frontier.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 3765.

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Date of creation: Feb 2002
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Handle: RePEc:cpr:ceprdp:3765

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Keywords: competition; FDI; knowledge spillovers;

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