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FDI and Superstar Spillovers: Evidence from Firm-to-Firm Transactions

Author

Listed:
  • Mary Amiti
  • Cédric Duprez
  • Jozef Konings
  • John Van Reenen

Abstract

Using firm-to-firm transactions, we show that starting to supply a ‘superstar’ firm (large domestic firms, exporters and multinationals) boosts productivity by 8% in the medium-run. Placebos on starting relationships with smaller firms and novel identification strategies support a causal interpretation of “superstar spillovers”. Consistent with a model of technology transfer, we find falls in markups and bigger treatment effects from technology-intensive superstars. We also show that the increase in new buyers is particularly strong within the superstar firm's network, a “dating agency” effect. This suggests an important role for raising productivity through superstars' supply chains regardless of their multinational status.

Suggested Citation

  • Mary Amiti & Cédric Duprez & Jozef Konings & John Van Reenen, 2023. "FDI and Superstar Spillovers: Evidence from Firm-to-Firm Transactions," NBER Working Papers 31128, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:31128
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    1. Li, Xing & Chen, Xi & Hou, Keqiang, 2024. "FDI technology spillovers in Chinese supplier-customer networks," International Review of Financial Analysis, Elsevier, vol. 94(C).
    2. Agnes Norris Keiller & Tim Obermeier & Andreas Teichgraeber & John Van Reenen, 2024. "An engine of (pay) growth? Productivity and wages in the UK auto industry," CEP Discussion Papers dp2015, Centre for Economic Performance, LSE.
    3. Ma, Xiao & Zhang, Yiran, 2023. "How do Multinational Firms Impact China’s Technology? The Role of Quid Pro Quo Policy and Technology Spillovers," MPRA Paper 119371, University Library of Munich, Germany.
    4. José Luis Gracia Bustelo & Albert Miró Pérez & Harold Meruvia Torrez, 2025. "The Determinants of the Concentration of Superstar Firms: Cluster Analysis and Its Relationship with Economic Development and Artificial Intelligence," Economies, MDPI, vol. 13(2), pages 1-20, February.
    5. Siedschlag, Iulia & Duran Vanegas, Juan, 2023. "Inward foreign direct investment, superstar firms and wage inequality between firms: Evidence from European regions," Papers WP770, Economic and Social Research Institute (ESRI).
    6. Gauß, P. & Kortenhaus, M. & Riedel, N. & Simmler, M., 2024. "Leveling the playing field: Constraints on multinational profit shifting and the performance of national firms," Journal of Public Economics, Elsevier, vol. 234(C).
    7. Shi, Lifan & Li, Xing & Chen, Xi, 2025. "How does FDI affect enterprises' OFDI through trade networks?," International Review of Economics & Finance, Elsevier, vol. 97(C).

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    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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