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

Oxford Review of Economic Policy

Volumn 20, Issue 3, 2004, Pages 440-456

  Griffith, Rachel ^a   Redding, Stephen ^b   Simpson, Helen ^c  

^a UNIVERSITY COLLEGE LONDON   (United Kingdom)

^b LONDON SCHOOL OF ECONOMICS   (United Kingdom)

^c INSTITUTE FOR FISCAL STUDIES   (United Kingdom)

Author keywords

[No Author keywords available]

Indexed keywords

FOREIGN DIRECT INVESTMENT; INDUSTRIAL PERFORMANCE; PRODUCTIVITY; RESEARCH AND DEVELOPMENT; SCIENCE AND TECHNOLOGY; SERVICE SECTOR;

EASTERN HEMISPHERE; EURASIA; EUROPE; UNITED KINGDOM; WESTERN EUROPE; WORLD;

EID: 8644251357     PISSN: 0266903X     EISSN: None     Source Type: Journal    
DOI: 10.1093/oxrep/grh026     Document Type: Article

References (65)

1. Aghion,P., and Howitt,P. (1992),'A Model of Growth through Creative Destruction', Econometrica, March, 323-51.
2. Aghion,P., and Howitt,P. (1997), Endogenous Growth Theory, Cambridge, MA, MIT Press.
3. Aghion,P., Bloom, N., Blundell, R., Griffith, R., and Howitt, P. (2002), 'Competition and Innovation: An Inverted U Relationship', NBER Working Paper No. 9269.
4. Aghion,P., Blundell, R., Griffith, R., Howitt, P., and Prantl, S. (2004),'Entry and Productivity Growth: Evidence from Microlevel Data', Journal of the European Economic Association, 2(2-3), 265-76.
5. Aitken, B., and Harrison, A. (1999), 'Do Domestic Firms Benefit from Direct Foreign Investment? Evidence from Venezuela', American Economic Review, June, 605-18.
6. Barba Navaretti, G., Venables, A., Barry, F., Ekholm, K., Falzoni, A., Haaland, J., Midelfart, K., and Turrini, A. (2004), Multinational Firms in the World Economy, Princeton, NJ, Princeton University Press, forthcoming.
7. Barnes, M., and Martin, R. (2002), 'Business Data Linking: An Introduction', Economic Trends, 581(April),34-41.
8. Baurnol, W., and Wolff, E. (1984), 'On Interindustry Differences in Absolute Productivity', Journal of Political Economy, 92 6),1017-34.
9. Blalock, G. (2001), 'Technology from Foreign Direct Investment: Strategic Transfer Through Supply Chains', PhD Thesis, University of California Berkeley.
10. Blomstrom, M. (1989), Foreign Investment and Spillovers, London, Routledge.
11. Blundell, R., Griffith, R., and Van Reenen, J. (1999),'Market Share, Market Value and Innovation in a Panel of British Manufacturing Firms', Review of Economic Studies, 66, 529-54.
12. Brainard, L. (1997),'An Empirical Assessment of the Proximity-Concentration Trade-off Between Multinational Sales and Trade', American Economic Review, 87(4), 520-44.
13. Branstetter, L. (2003),'Is Foreign Direct Investment a Channel of Knowledge Spillovers? Evidence from Japan's FDI in the United States', Columbia Business School and NBER, mimeo.
14. Cameron, G. (1996), 'Catchup and Leapfrog between the USA and Japan', ch. 6 of DPhil thesis, Nuffield College, University of Oxford.
15. Cameron, G. Proudman, J., and Redding, S. (1998), 'Productivity Convergence and International Openness', ch. 6 in J. Proudman and S. Redding (eds), Openness and Growth, London, Bank of England.
16. Caves, R. (1974),'Multinational Firms, Competition and Productivity in Host-country Markets', Economica, 41, 176-93.
17. Caves, R. (1996), Multinational Enterprise and Economic Analysis, Cambridge, Cambridge University Press.
18. Conyon, M., Girma, S., Thompson, S., and Wright, P. (2002), 'The Impact of Foreign Acquisition on Wages and Productivity in the UK', Journal of Industrial Economics, 50, 85-102.
19. Criscuolo, C., and Martin (2003),'Multinationals, and US Productivity Leadership: Evidence from Britain', CERIBA Discussion Paper, United Kingdom.
20. Doms, M., and Jensen, J. B. (1998),'Comparing Wages, Skills, and Productivity Between Domestically and Foreign-owned Manufacturing Establishments in the United States', in R. Baldwin et al. (eds), Geography and Ownership as Bases for Economic Accounting, Chicago, IL, University of Chicago Press, 235-58.
21. Driffield, N., Munday, M., and Roberts, A. (2002), 'Foreign Direct Investment, Transactions Linkages, and the Performance of the Domestic Sector', International Journal ofthe Economics of Business, 9 3), 335-51.
22. Dunning, J. (I 977),'Trade, Location of Economic Activity and MNE: A Search for an Eclectic Approach', in B. Ohlin, P. O. Hesselborn, and P. M. Wijkman (eds), The International Allocation of Economic Activity London, Macmillan, 395-418.
23. Ferrett, B. (2003),'Greenfield Investment versus Acquisition: Positive Analysis', Research Paper 2003/02, Leverhulme Centre for Research on Globalization and Economic Policy, University of Nottingham.
24. Girma, S. (2002),'Absorptive Capacity and Productivity Spillovers from FDI: A Threshold Regression Analysis', GEP Working Paper,2002/08, University of Nottingham.
25. Girma, S. Görg, H. (2003), 'Evaluating the Causal Effects of Foreign Acquisition on Domestic Skilled and Unskilled Wages', GEP Research Paper 03/40.
26. Globerman, S. (1979), 'Foreign Direct Investment and Spillover Efficiency Benefits in Canadian Manufacturing Industries', Canadian Journal of Economics, 12, 42-56.
27. Görg, H., and Greenaway, D. (2004),'Much Ado AboutNothing? Do Domestic Firms Really Benefit from Foreign Direct Investment?', The World Bank Research Observer, 19, 171-97.
28. Görg, H., Strobl, E. (2001), 'Multinational Companies and Productivity Spillovers: A Meta-analysis', The Economic Journal, 111(475),F723-39.
29. Görg, H., Strobl, E. (2004),'Foreign Direct Investment and Local Economic Development: Beyond Productivity Spillovers', GEP Research Paper 04/11.
30. Griffith, R. (1999), 'Using the ARD Establishment-level Data to Look at Foreign Ownership and Productivity in the United Kingdom', The Economic Journal, 109, F416-42.
31. Griffith, R. Harrison, R., and Van Reenen, J. (2004 a), 'Technology Sourcing by UK Manufacturing Firms: An Empirical Analysis Using Firm-level Patent Data', Institute for Fiscal Studies, mimeo.
32. Griffith, R. Redding, S., and Simpson, H. (2003 a), 'Productivity Convergence and Foreign Ownership at the Establishment Level', CEPR Discussion Paper 3765.
33. Griffith, R. Van Reenen, J. (2003 b), 'R&D and Absorptive Capacity: Theory and Empirical Evidence', Scandinavian Journal of Economics, 105(1),99-118.
34. Griffith, R. Van Reenen, J. (2004 b),'Mapping the Two Faces of R&D: Productivity Growth in a Panel of OECD Industries', Review of Economics and Statistics, forthcoming.
35. Griffith, R., Harrison, R., Haskel, J., and Sako,M. (2003c),'The UK Productivity Gap and the Importance of the Service Sectors', AIM Briefing Note.
36. Harris, R., and Hassaszadeh, P. (2002), 'The Impact of Ownership Changes and Age Effects on Plant Exits in UK Manufacturing 1974-1995', Economics Letters, 75, 309-17.
37. Harris, R., Robinson, C. (2002),'The Impact of Foreign Acquisitions on Total Factor Productivity: Plant Level Evidence from UK Manufacturing 1987-1992', Review of Economics and Statistics, 84(3 ),562-8.
38. Haskel, J., Pereira, S., and Slaughter, M. (2002), 'Does Inward Foreign Direct Investment Boost the Productivity of Domestic Firms, CEPR Discussion Paper 3384.
39. Helpman, E. (1984),'A Simple Theory of Trade with Multinational Corporations', Journal of Political Economy, 92, 451-71.
40. Helpman, E. (1985), 'Multinational Corporations and Trade Structure', Review of Economic Studies, 52, 443-57.
41. Helpman, E. Krugman, P. (1985), Market Structure and Foreign Trade Cambridge, MA, MIT Press.
42. Helpman, E. Melitz, M., and Yeaple, S. (2004),'Export versus FDI With Heterogeneous Firms', American Economic Review, forthcoming.
43. Howenstine, N., and Zeile, W. (I 994),'Characteristics of Foreign-owned US Manufacturing Establishments', Survey of Current Business, 74(1),34-59.
44. Iwasi, T., and Odigari, H. (2000),'The Role of Overseas R&D Activities in Technological Knowledge Sourcing: An Empirical Study of Japanese R&D Investment in the US', Discussion PaperNo. 23, National Institute of Science and Technology Policy (NISTEP), 984-1001.
45. Keller, W., and Yeaple, S. (2003),'Multinational Enterprises, International Trade, and Productivity Growth: Firm-level Evidence from the United States', NBER Working PaperNo. 9504.
46. Kinoshita,Y. (2000),'R&D and Technology Spillovers through Foreign Direct Investment: Innovation and Absorptive Capacity', CEPR Discussion Paper 2775.
47. Lichtenberg, F., and van Pottelsberghe de la Potterie, B. (2001), 'Does Foreign Direct Investment Transfer Technology Across Borders', Review of Economics and Statistics, 83(3).
48. Lipsey, R. (2002),'Home and Host Country Effects of FDI', NBER Working Paper w9293.
49. Markusen, J. (1984), 'Multinationals, Multi-plant Economies, and the Gains from Trade', Journal of International Economics, 16, 205-26.
50. Markusen, J. (2002), Multinational Firms and the Theory of International Trade, Cambridge, MA, MIT Press.
51. Markusen, J. Venables, A. (1998), 'Multinational Firms and the New Trade Theory', Journal of International Economics, 46(2),183-203.
52. Markusen, J. Venables, A. (1999),'Foreign Direct Investment as a Catalyst for Industrial Development', European Economic Review, 43,335-56.
53. Markusen, J. Venables, A. (2000), 'The Theory of Endowment, Intra-industry, and Multinational Trade', Journal of International Economics, 52(2),209-34.
54. Nickell, S. (1996), 'Competition and Corporate Performance', Journal of Political Economy, 104,724-46. Redding, S., and Swaffield, J. (2004),'The Uneven Pace of Deindustrialization in the OECD', revised version of CEPR Discussion Paper 3068, London School of Economics, mimeo.
55. Nickell, S., Redding, S., and Swaffield, J. (2004),'The Uneven Pace of Deindustrialization in the OECD', revised version of CEPR Discussion Paper 3068, London School of Economics, mimeo.
56. Nocke, V., andYeaple, S. (2004),'Mergers andthe Composition ofInternational Commerce', NBER Working Paper No. 10405.
57. Office forNational Statistics (2000), Foreign Direct Investment (Business MonitorMA 4), Newport, National Statistics.
58. Oulton,N. (2000),'Why Do Foreign-owned Firms in the UK have Higher Labour Productivity?'Bank of England, mimeo.
59. Serapio, M. G., Jr, and Dalton, D. H. (1999), 'Globalization of Industrial R&D: An Examination of Foreign Direct Investments in R&D in the United States', Research Policy, 28, 303-16.
60. Singh, J. (2003), 'Knowledge Diffusion and the Role of Multinational Subsidiaries', Harvard Business School and Department of Economics, mimeo.
61. Smarzynska Javorcik, B. K. (2004),'Does Foreign Direct Investment Increase the Productivity of Domestic Firms? In Search of Spillovers through Backward Linkages', American Economic Review, forthcoming. Markusen, J. Venables, A.
62. Teece, D. (1977),'Technology Transfer by Multinational Firms: The Resource Cost of Transferring Technological Know-how', The Economic Journal, 87(346),242-61.
63. van Ark, B., Inklaar, R., and McGuckin, R. (2003), 'ICT and Productivity in Europe and the United States. Where Do the Differences Come From?', CESifo Economic Studies, 49(3),295-31.
64. Vernon, R. (1966), 'International Investment and International Trade in the Product Cycle', Quarterly Journal of Economics, 80 190-207.
65. von Zedtwitz, M., and Gassmann, O. (2002), 'Market versus Technology Drive in R&D Internationalisation: Four Different Patterns of Managing Research and Development', Research Policy, 31, 569-88.