UCL Discovery
UCL home » Library Services » Electronic resources » UCL Discovery

Foreign ownership and productivity: new evidence from the service sector and the R&D lab

Griffith, R.; Redding, S.; Simpson, H.; (2004) Foreign ownership and productivity: new evidence from the service sector and the R&D lab. (IFS Working Papers W04/22). Institute for Fiscal Studies: London, UK. Green open access

[thumbnail of 2892.pdf]
Preview
PDF
2892.pdf

Download (310kB)

Abstract

This paper examines the relationship between foreign ownership and productivity, paying particular attention to two issues neglected in the existing literature – the role of multinationals in service sectors and the importance of R&D activity conducted by foreign multinationals. We review existing theoretical and empirical work, which largely focuses on manufacturing, before presenting new evidence using establishment level data on production, service and R&D activity for the United Kingdom. We find that multinationals play an important role in service sectors and that entry of foreign multinationals by takeover is more prevalent than greenfield investment. We find that British multinationals have lower levels of labour productivity than foreign multinationals, but the difference is less stark in the service sector than in the production sector, and that British multinationals have lower levels of investment and intermediate use per employee. We also find that foreign-owned multinationals conduct a substantial amount of UK R&D. We discuss the implications of these and other findings for the policy debate on incentives to influence multinational firms’ location choices.

Type: Working / discussion paper
Title: Foreign ownership and productivity: new evidence from the service sector and the R&D lab
Open access status: An open access version is available from UCL Discovery
Publisher version: http://dx.doi.org/10.1920/wp.ifs.2004.0422
Language: English
Keywords: JEL classification: F23, O47, L60, L80. Foreign investment, productivity, knowledge spillovers
UCL classification: UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS > Dept of Economics
URI: https://discovery.ucl.ac.uk/id/eprint/2892
Downloads since deposit
438Downloads
Download activity - last month
Download activity - last 12 months
Downloads by country - last 12 months

Archive Staff Only

View Item View Item