Citation

Discussion Paper Details

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Title: Productivity Convergence and Foreign Ownership at the Establishment Level

Author(s): Rachel Griffith, Stephen J. Redding and Helen Simpson

Publication Date: February 2002

Keyword(s): competition, FDI and knowledge spillovers

Programme Area(s): Industrial Organization

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.

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Bibliographic Reference

Griffith, R, Redding, S and Simpson, H. 2002. 'Productivity Convergence and Foreign Ownership at the Establishment Level'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=3765