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Productivity convergence and foreign ownership at the establishment level

Griffith, R; Simpson, H; Redding, S; (2002) Productivity convergence and foreign ownership at the establishment level. (IFS Working Papers W02/22 ). The Institute for Fiscal Studies, UCL (University College London), The Institute for Fiscal Studies: London, UK. Green open access

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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 quatatively 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. 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 quatatively 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.

Type: Report
Title: Productivity convergence and foreign ownership at the establishment level
Open access status: An open access version is available from UCL Discovery
Additional information: Imported via OAI, 7:29:00 31st Mar 2007
UCL classification: UCL > Provost and Vice Provost Offices
UCL > Provost and Vice Provost Offices > UCL SLASH
UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS > Dept of Economics
URI: https://discovery.ucl.ac.uk/id/eprint/2945
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