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The Growth of Multinational Firms in the Great Recession

Author

Listed:
  • Vanessa Alviarez

    (University of British Columbia, Sauder)

  • Andrei A. Levchenko

    (University of Michigan and NBER)

  • Javier Cravino

    (University of Michigan and NBER)

Abstract

Using a large firm-level dataset, this paper studies multinational firmsÕ 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 multinationalsÕ relative performance remained unchanged during the crisis, the median countryÕs aggregate growth would have been 0.12% higher, with a range of -0.13 to 0.5% across countries.

Suggested Citation

  • Vanessa Alviarez & Andrei A. Levchenko & Javier Cravino, 2016. "The Growth of Multinational Firms in the Great Recession," Working Papers 654, Research Seminar in International Economics, University of Michigan.
  • Handle: RePEc:mie:wpaper:654
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    File URL: http://www.fordschool.umich.edu/rsie/workingpapers/Papers651-675/r654.pdf
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    References listed on IDEAS

    as
    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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    4. Giuseppe Moscarini & Fabien Postel-Vinay, 2012. "The Contribution of Large and Small Employers to Job Creation in Times of High and Low Unemployment," American Economic Review, American Economic Association, vol. 102(6), pages 2509-2539, October.
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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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    11. Teresa C Fort & John Haltiwanger & Ron S Jarmin & Javier Miranda, 2013. "How Firms Respond to Business Cycles: The Role of Firm Age and Firm Size," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 61(3), pages 520-559, August.
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    Cited by:

    1. 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.
    2. repec:kap:sbusec:v:50:y:2018:i:1:d:10.1007_s11187-017-9899-x is not listed on IDEAS
    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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