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Foreign Plants and Industry Productivity: Evidence from Chile

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  • Natalia Ramondo

Abstract

This paper presents new evidence on foreign plants and their effects on a host industry. I test the predictions of a Melitz-type model using a panel of domestic and foreign plants in the Chilean manufacturing sector. Foreign ownership is a strong predictor of plant productivity and size advantages. Moreover, productivity gains for a domestic incumbent are positively associated with foreign plants' presence in the same industry and region. I also find a positive correlation between foreign entry and exit of less productive domestic plants, but inconclusive evidence on the effects on productivity of new domestic plants. Copyright The editors of the "Scandinavian Journal of Economics" 2009 .

Suggested Citation

  • Natalia Ramondo, 2009. "Foreign Plants and Industry Productivity: Evidence from Chile," Scandinavian Journal of Economics, Wiley Blackwell, vol. 111(4), pages 789-809, December.
  • Handle: RePEc:bla:scandj:v:111:y:2009:i:4:p:789-809
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    Cited by:

    1. Blonigen, Bruce A. & Fontagné, Lionel & Sly, Nicholas & Toubal, Farid, 2014. "Cherries for sale: The incidence and timing of cross-border M&A," Journal of International Economics, Elsevier, vol. 94(2), pages 341-357.
    2. Nancy L. Stokey, 2012. "Catching Up and Falling Behind," NBER Working Papers 18654, National Bureau of Economic Research, Inc.
    3. Laura Alfaro & Maggie X. Chen, 2012. "Selection and Market Reallocation: Productivity Gains from Multinational Production," NBER Working Papers 18207, National Bureau of Economic Research, Inc.
    4. Maria Guadalupe & Olga Kuzmina & Catherine Thomas, 2012. "Innovation and Foreign Ownership," American Economic Review, American Economic Association, vol. 102(7), pages 3594-3627, December.
    5. Martin Kliem & Alexander Kriwoluzky, 2014. "Toward a Taylor Rule for Fiscal Policy," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 17(2), pages 294-302, April.
    6. Martin Kliem & Alexander Kriwoluzky, 2014. "Toward a Taylor Rule for Fiscal Policy," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 17(2), pages 294-302, April.
    7. Ana Maria Santacreu & Federico Gavazzoni, 2015. "International R&D Spillovers and Asset Prices," 2015 Meeting Papers 405, Society for Economic Dynamics.
    8. repec:aea:aejpol:v:10:y:2018:i:2:p:1-38 is not listed on IDEAS
    9. Nancy Stokey, 2015. "Catching up and falling behind," Journal of Economic Growth, Springer, vol. 20(1), pages 1-36, March.
    10. Joel Rodrigue, 2014. "Multinational Production, Exports and Aggregate Productivity," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 17(2), pages 243-261, April.
    11. Gianluca Orefice & Nicholas Sly & Farid Toubal, 2015. "The Multinational Wage Premium and Wage Dynamics," CESifo Working Paper Series 5263, CESifo Group Munich.
    12. Zadia M Feliciano & Robert E Lipsey, 2017. "Foreign Entry into US Manufacturing by Takeovers and the Creation of New Firms," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 43(1), pages 1-16, January.
    13. Merino, Fernando, 2012. "Firms' internationalization and productivity growth," Research in Economics, Elsevier, vol. 66(4), pages 349-354.
    14. Nancy Stokey, 2012. "Catching Up and Falling Behind," Working Papers 2012-015, Becker Friedman Institute for Research In Economics.

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