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

Author/Editor:

Stephen R. Yeaple ; Wolfgang Keller

Publication Date:

December 1, 2003

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

We estimate international technology spillovers to U.S. manufacturing firms via imports and foreign direct investment (FDI) between 1987 and 1996. In contrast to earlier work, our results suggest that FDI leads to substantial productivity gains for domestic firms. The size of FDI spillovers is economically important, accounting for about 11 percent of productivity growth in U.S. firms between 1987 and 1996. In addition, there is some evidence for import-related spillovers, but it is weaker than for FDI spillovers. 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 also likely to apply to other countries and periods.

Series:

Working Paper No. 2003/248

Subject:

Balance of payments Financial sector policy and analysis Foreign direct investment Imports International trade Production Productivity Spillovers Total factor productivity

English

Publication Date:

December 1, 2003

ISBN/ISSN:

9781451875898/1018-5941

Stock No:

WPIEA2482003

Pages:

40

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