Multinational Enterprises, International Trade, and Productivity Growth: Firm-Level Evidence from the United States

Brown University Department of Economics Working Paper No. 03-06

52 Pages Posted: 20 Jun 2003

See all articles by Wolfgang Keller

Wolfgang Keller

University of Colorado; National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR)

Stephen R. Yeaple

Pennsylvania State University - College of the Liberal Arts - Department of Economic; National Bureau of Economic Research (NBER)

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Date Written: January 2003

Abstract

We estimate international technology spillovers to U.S. manufacturing firms via imports and foreign direct investment (FDI) between the years of 1987 and 1996. In contrast to earlier work, our results suggest that FDI leads to significant productivity gains for domestic firms. The size of FDI spillovers is economically important, accounting for about 14% of productivity growth in U.S. firms between 1987 and 1996. In addition, there is some evidence for imports-related spillovers, but it is weaker than for FDI. The paper also gives a detailed account of why our study leads to results different from those found in previous work. This analysis indicates that our results are likely to generalize to other countries and periods.

Suggested Citation

Keller, Wolfgang and Yeaple, Stephen R., Multinational Enterprises, International Trade, and Productivity Growth: Firm-Level Evidence from the United States (January 2003). Brown University Department of Economics Working Paper No. 03-06. Available at SSRN: https://ssrn.com/abstract=399741 or http://dx.doi.org/10.2139/ssrn.399741

Wolfgang Keller (Contact Author)

University of Colorado ( email )

Department of Economics
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National Bureau of Economic Research (NBER)

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Centre for Economic Policy Research (CEPR)

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United Kingdom

Stephen R. Yeaple

Pennsylvania State University - College of the Liberal Arts - Department of Economic ( email )

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University Park, PA 16802-3306
United States
8148655452 (Phone)

National Bureau of Economic Research (NBER)

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Cambridge, MA 02138
United States

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