Productivity Convergence and Foreign Ownership at the Establishment Level

37 Pages Posted: 18 Mar 2003

See all articles by Rachel Griffith

Rachel Griffith

Institute for Fiscal Studies (IFS); University of Manchester; Centre for Economic Policy Research (CEPR)

Stephen J. Redding

Princeton University

Helen Simpson

CMPO; Institute for Fiscal Studies (IFS)

Date Written: February 2002

Abstract

This Paper investigates whether there is convergence in Total Factor Productivity towards the technological frontier at the establishment level. We find convergence to the frontier is statistically and quantitatively important, suggesting the existence of technology spillovers. Foreign multinationals make up a significant proportion of establishments at the technological frontier, and therefore make a contribution to productivity growth through technology transfer. We also find evidence that increased foreign presence within an industry raises the speed of convergence to the technological frontier.

Keywords: FDI, knowledge spillovers, competition

JEL Classification: F23, O33, O47

Suggested Citation

Griffith, Rachel and Redding, Stephen J. and Simpson, Helen, Productivity Convergence and Foreign Ownership at the Establishment Level (February 2002). CEPR Discussion Paper No. 3765. Available at SSRN: https://ssrn.com/abstract=388802

Rachel Griffith (Contact Author)

Institute for Fiscal Studies (IFS) ( email )

7 Ridgmount Street
London WC1E 7AE
United Kingdom
+44 20 7291 4800 (Phone)
+44 20 7323 4780 (Fax)

University of Manchester ( email )

Arthur Lewis Building
Oxford Road
Manchester, M13 9PL
United Kingdom

HOME PAGE: http://www.ifs.org.uk/people/profile?id=37

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Stephen J. Redding

Princeton University ( email )

Princeton, NJ 08544-1021
United States

HOME PAGE: http://www.princeton.edu/~reddings/

Helen Simpson

CMPO ( email )

University of Bristol
2 Priory Road
Bristol, BS8 ITX
United Kingdom

Institute for Fiscal Studies (IFS) ( email )

7 Ridgmount Street
London, WC1E 7AE
United Kingdom
+44 20 7291 4800 (Phone)
+44 20 7323 4780 (Fax)

Register to save articles to
your library

Register

Paper statistics

Downloads
30
Abstract Views
1,248
PlumX Metrics