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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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    Cited by:

    1. Juan Duran & Iulia Siedschlag, 2025. "Multinational Enterprises and Between‐Firm Wage Inequality Across European Regions," The World Economy, Wiley Blackwell, vol. 48(11), pages 2447-2466, November.
    2. 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).
    3. 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).
    4. Li, Xing & Chen, Xi & Hou, Keqiang, 2024. "FDI technology spillovers in Chinese supplier-customer networks," International Review of Financial Analysis, Elsevier, vol. 94(C).
    5. Mensah, Justice Tei & Wankuru, Peter Chacha & Kirui, Benard K., 2025. "Public Procurement and Firms : Evidence from Kenya," Policy Research Working Paper Series 11227, The World Bank.
    6. Cao, Yunshi & Jiang, Meini & Shen, Jun, 2025. "Can overseas R&D improve domestic industry-university-research institutions’ cooperation?," Journal of Asian Economics, Elsevier, vol. 97(C).
    7. 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.
    8. 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.
    9. Schroeder, Sarah, 2025. "Exporters, multinationals and residual wage inequality: Evidence and theory," European Economic Review, Elsevier, vol. 173(C).
    10. 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).
    11. Meng Yu Ngov & Pierre-Louis Vezina & Trang Thu Tran & Gaurav Nayyar, 2025. "The Rise of Viet Nam’s Solar Panel Industry: Inputs, FDI, and Spillovers," CSAE Working Paper Series 2025-14, Centre for the Study of African Economies, University of Oxford.
    12. Thomas Michael Rowley, 2025. "Domestic vs foreign superstars: comparative advantage and productivity spillovers," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 161(3), pages 869-909, August.
    13. Agnes Norris Keiller & Tim Obermeier & Andreas Teichgraeber & John Van Reenen, 2024. "An Engine of (Pay) Growth? Productivity and Wages in the UK Auto Industry," NBER Working Papers 32695, National Bureau of Economic Research, Inc.
    14. Liu, Yibing & Cao, Liang & Wu, Lamei & Xi, Yanle & Zhang, Siyi, 2025. "The impact of FDI on firms’ pollution emissions: Evidence from China," International Review of Economics & Finance, Elsevier, vol. 100(C).

    More about this item

    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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