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Internationalized Production in World Output

  • Robert E. Lipsey
  • Magnus Blomstrom
  • Eric Ramstetter

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 percent of world output. The share was higher, at 15 percent in 'industry,' including manufacturing, trade, construction, and public utilities, but it was negligible in 'services,' which are about 60 percent 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 National Bureau of Economic Research, Inc in its series NBER Working Papers with number 5385.

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Date of creation: Dec 1995
Date of revision:
Publication status: published as Geography and Ownership as Bases for Economic Accounting. Baldwin, Lipsey,and Richardson, eds., pp. 83-135. The University of Chicago Press, 1998.
Handle: RePEc:nbr:nberwo:5385
Note: ITI
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