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Internationalized Production in World Output

  • Lipsey, Robert E.

    (National Bureau of Economic Research)

  • Blomström, Magnus

    ()

    (Department of Economics)

  • Ramstetter, Eric

    (Faculty of Economics)

Internationalized production, that is, production by multinational firms outside their home countries has increased over the last two decades, but it was still, in 1990, only about 7 per cent of world output. The share was higher, at 15 per cent in "industry", including manufacturing, trade, construction, and public utilities, but it was negligible in "services", which are about 60 per cent of world output. Given all the attention that "globalization" has received from scholars, international organizations, and the press, these numbers are a reminder of how large a proportion of economic activity is confined to single geographical locations and home country ownership. Internationalization of production is clearly growing in importance, but the vast majority of production is still carried out by national producers within their own borders.

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Paper provided by Stockholm School of Economics in its series SSE/EFI Working Paper Series in Economics and Finance with number 80.

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Length: 112 pages
Date of creation: Oct 1995
Date of revision:
Publication status: Published in Geography and Ownership as Bases for Economic Accounting, Baldwin, R. E. (eds.), 1997, Oxford University Press.
Handle: RePEc:hhs:hastef:0080
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