The Contribution of Multinational Corporations to U.S. Productivity Growth, 1977-2000

Posted: 2 Jul 2021 Last revised: 1 Jul 2021

See all articles by Carol Corrado

Carol Corrado

affiliation not provided to SSRN

Paul Lengermann

Board of Governors of the Federal Reserve System

Larry Slifman

Board of Governors of the Federal Reserve System

Date Written: 2007

Abstract

In this paper, we decompose aggregate labor productivity growth in order to gauge the relative importance of multinational corporations (MNCs) to the economic performance of the United States in the 1990s. As we define it, the MNC sector refers to the U.S. activities of multinational corporations operating in the United States. We develop productivity estimates for MNCs using (1) published and unpublished industry-level data from two surveys conducted by the Bureau of Economic Analysis and (2) productivity data for industries and major sectors from the FRB productivity system (Bartelsman and Beaulieu 2003, 2004). The resulting MNC sector accounted for about 40 percent of the gross product of all nonfinancial corporations and all of the pickup in nonfinancial corporate labor productivity in the late 1990s. Accordingly, the MNC sector accounted for more than half of the acceleration in labor productivity growth of all U.S. nonfarm private businesses.

Suggested Citation

Corrado, Carol and Lengermann, Paul and Slifman, Larry, The Contribution of Multinational Corporations to U.S. Productivity Growth, 1977-2000 (2007). FEDS Working Paper No. 2007-21, Available at SSRN: https://ssrn.com/abstract=3877816

Carol Corrado (Contact Author)

affiliation not provided to SSRN

No Address Available

Paul Lengermann

Board of Governors of the Federal Reserve System ( email )

20th Street and Constitution Avenue NW
Washington, DC 20551
United States

Larry Slifman

Board of Governors of the Federal Reserve System

20th Street and Constitution Avenue NW
Washington, DC 20551
United States

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