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Multinationals and US productivity leadership: evidence from Great Britain

  • Chiara Criscuolo
  • Ralf Martin

We study the productivity of US owned plants in the UK. Using a new dataset that identifies foreign and domestic MNEs, we find that UK MNEs are less productive than US affiliates, but as productive as non US foreign affiliates. We investigate the source of the US and MNE advantage. We find evidence confirming that the MNE advantage is driven by sharing superior firm level assets across plants and by cherry picking the better plants in a country. The additional superiority of US firms seems entirely driven by their particular ability to takeover the best British plants. Thirdly, the study features a novel approach to TFP calculation.

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File URL: http://eprints.lse.ac.uk/19914/
File Function: Open access version.
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Paper provided by London School of Economics and Political Science, LSE Library in its series LSE Research Online Documents on Economics with number 19914.

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Length: 43 pages
Date of creation: Jan 2005
Date of revision:
Handle: RePEc:ehl:lserod:19914
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