FDI and superstar spillovers: evidence from firm-to-firm transactions

Amiti, Mary, Duprez, Cedric, Konings, Jozef and Van Reenen, John ORCID: 0000-0001-9153-2907 (2023) FDI and superstar spillovers: evidence from firm-to-firm transactions. CEP Discussion Papers (CEPDP1917). London School of Economics and Political Science. Centre for Economic Performance, London, UK.

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Abstract

Using firm-to-firm transactions, we show that starting to supply a "superstar" firm (large domestic firms, exporters and multinationals) boosts productivity by 8% in the medium-run. Placebos on starting relationships with smaller firms and novel identification strategies support a causal interpretation of "superstar spillovers". Consistent with a model of technology transfer, we find falls in markups and bigger treatment effects from technology-intensive superstars. We also show that the increase in new buyers is particularly strong within the superstar firm's network, a "dating agency" effect. This suggests an important role for raising productivity through superstars' supply chains regardless of their multinational status.

Item Type:	Monograph (Discussion Paper)
Official URL:	https://cep.lse.ac.uk/_new/publications/discussion...
Additional Information:	© 2023 The Author(s)
Divisions:	Economics
Subjects:	H Social Sciences > HC Economic History and Conditions
JEL classification:	F - International Economics > F2 - International Factor Movements and International Business > F23 - Multinational Firms; International Business O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development > O30 - General F - International Economics > F2 - International Factor Movements and International Business > F21 - International Investment; Long-Term Capital Movements
Date Deposited:	23 Jan 2024 11:48
Last Modified:	23 Jan 2024 11:48
URI:	http://eprints.lse.ac.uk/id/eprint/121331

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