Multinationals and US Poductivity Leadership: Evidence from Great Britain

Advanced Institute of Management Research Paper No. 024

42 Pages Posted: 26 Nov 2008

See all articles by Chiara Criscuolo

Chiara Criscuolo

London School of Economics & Political Science (LSE) - Centre for Economic Performance (CEP); University of Siena - Department of Economics

Ralf Martin

London School of Economics & Political Science (LSE) - Department of Economics; Imperial College Business School

Date Written: September 24, 2005

Abstract

We study the productivity of US owned plants in the UK. Using a new dataset that identifes foreign and domestic MNEs, we find that UK MNEs are less productive than US affliates, but as productive as non US foreign affliates. We investigate the source of the US and MNE advantage. We find evidence confirming that the MNE advantage is driven by sharing superior firm level assets across plants and by cherry picking the better plants in a country. The additional superiority of US firms seems entirely driven by their particular ability to takeover the best British plants. Thirdly, the study features a novel approach to TFP calculation.

Suggested Citation

Criscuolo, Chiara and Martin, Ralf, Multinationals and US Poductivity Leadership: Evidence from Great Britain (September 24, 2005). Advanced Institute of Management Research Paper No. 024, Available at SSRN: https://ssrn.com/abstract=1307016 or http://dx.doi.org/10.2139/ssrn.1307016

Chiara Criscuolo (Contact Author)

London School of Economics & Political Science (LSE) - Centre for Economic Performance (CEP) ( email )

Houghton Street
London WC2A 2AE
United Kingdom

University of Siena - Department of Economics

Piazza S. Francesco 7
Siena, I-53100
Italy

Ralf Martin

London School of Economics & Political Science (LSE) - Department of Economics ( email )

Houghton Street
London WC2A 2AE
United Kingdom

Imperial College Business School ( email )

South Kensington Campus
Exhibition Road
London SW7 2AZ, SW7 2AZ
United Kingdom

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