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

36 Pages Posted: 12 Jul 2007

See all articles by Carol A. Corrado

Carol A. Corrado

The Conference Board; Georgetown University - Center for Business and Public Policy

Paul Lengermann

Board of Governors of the Federal Reserve System

Larry Slifman

Board of Governors of the Federal Reserve System

Date Written: February 9, 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 We develop productivity estimates for MNCs using (1) published and unpublished industry-level data from two surveys conducted by the Bureau of Economic Analysis and (2) productivity data for industries and major sectors from the FRB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.

Keywords: productivity, multinational corporations, nonfinancial corporations

JEL Classification: O47, J24

Suggested Citation

Corrado, Carol A. and Lengermann, Paul and Slifman, Larry, The Contribution of Multinational Corporations to U.S. Productivity Growth, 1977-2000 (February 9, 2007). FEDS Working Paper No. 2007-21, Available at SSRN: https://ssrn.com/abstract=999582 or http://dx.doi.org/10.2139/ssrn.999582

Carol A. Corrado (Contact Author)

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Paul Lengermann

Board of Governors of the Federal Reserve System ( email )

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Larry Slifman

Board of Governors of the Federal Reserve System

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Washington, DC 20551
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