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The growth of multinational firms in the Great Recession

Author

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  • Alviarez, Vanessa
  • Cravino, Javier
  • Levchenko, Andrei A.

Abstract

Using a large firm-level dataset, this paper studies multinational firms' performance during the Great Recession. Foreign multinationals grew faster than local firms outside of the crisis, but slower during the crisis. Industry and size differences between domestic and foreign-owned firms account for much of this slowdown. However, multinationals from different countries performed differently during the crisis. The paper then assesses the role of multinationals in the global recession using a quantitative model. Had multinationals' relative performance remained unchanged during the crisis, the median country's aggregate growth would have been 0.12% higher, with a range of -0.13 to 0.5% across countries.

Suggested Citation

  • Alviarez, Vanessa & Cravino, Javier & Levchenko, Andrei A., 2016. "The growth of multinational firms in the Great Recession," CEPR Discussion Papers 11637, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:11637
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    References listed on IDEAS

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    1. Javier Cravino & Andrei A. Levchenko, 2017. "Multinational Firms and International Business Cycle Transmission," The Quarterly Journal of Economics, Oxford University Press, vol. 132(2), pages 921-962.
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    7. Andrei A. Levchenko & Logan Lewis & Linda L. Tesar, 2009. "The Collapse of International Trade During the 2008-2009 Crisis: In Search of the Smoking Gun," Working Papers 592, Research Seminar in International Economics, University of Michigan.
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    1. repec:kap:sbusec:v:50:y:2018:i:1:d:10.1007_s11187-017-9899-x is not listed on IDEAS
    2. Latorre, María C. & Yonezawa, Hidemichi, 2017. "Stopped TTIP? Its potential impact on the world and the role of neglected FDI," MPRA Paper 77162, University Library of Munich, Germany.
    3. Del Prete, Davide & Rungi, Armando, 2017. "Organizing the global value chain: A firm-level test," Journal of International Economics, Elsevier, vol. 109(C), pages 16-30.

    More about this item

    Keywords

    great recession; multinational firms;

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F44 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Business Cycles

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