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Productivity convergence and foreign ownership at the establishment level

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  • Rachel Griffith
  • Stephen Redding
  • Helen Simpson

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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File URL: http://eprints.lse.ac.uk/3666/
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Bibliographic Info

Paper provided by London School of Economics and Political Science, LSE Library in its series LSE Research Online Documents on Economics with number 3666.

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Length: 37 pages
Date of creation: Jun 2003
Date of revision:
Handle: RePEc:ehl:lserod:3666

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Keywords: Foreign Direct Investment (FDI); Knowledge Spillovers; Competition;

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References

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