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Productivity Convergence and Foreign Ownership at the Establishment Level

  • Rachel Griffith
  • Stephen Redding
  • Helen Simpson

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 Centre for Economic Performance, LSE in its series CEP Discussion Papers with number dp0573.

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Date of creation: Jun 2003
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Handle: RePEc:cep:cepdps:dp0573
Contact details of provider: Web page: http://cep.lse.ac.uk/_new/publications/series.asp?prog=CEP

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