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Americans do IT better: US multinationals and the productivity miracle

Bloom, Nicholas, Sadun, Raffaella and Van Reenen, John (2012) Americans do IT better: US multinationals and the productivity miracle. American Economic Review, 102 (1). pp. 167-201. ISSN 0002-8282

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Abstract

US productivity growth accelerated after 1995 (unlike Europe's), particularly in sectors that intensively use information technologies (IT). Using two new micro panel datasets we show that US multinationals operating in Europe also experienced a "productivity miracle." US multinationals obtained higher productivity from IT than non-US multinationals, particularly in the same sectors responsible for the US productivity acceleration. Furthermore, establishments taken over by US multinationals (but not by non-US multinationals) increased the productivity of their IT. Combining pan-European firm-level IT data with our management practices survey, we find that the US IT related productivity advantage is primarily due to its tougher "people management" practices.

Item Type: Article
Official URL: http://www.aeaweb.org/aer/index.php
Additional Information: © 2012 American Economic Association
Library of Congress subject classification: H Social Sciences > HB Economic Theory
H Social Sciences > HD Industries. Land use. Labor
Journal of Economic Literature Classification System: D - Microeconomics > D2 - Production and Organizations > D24 - Production; Cost; Capital and Total Factor Productivity; Capacity
E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Employment, and Investment > E23 - Production
F - International Economics > F2 - International Factor Movements and International Business > F23 - Multinational Firms; International Business
M - Business Administration and Business Economics; Marketing; Accounting > M1 - Business Administration > M10 - General
O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development > O30 - General
Sets: Departments > Economics
Collections > Economists Online
Research centres and groups > Centre for Economic Performance (CEP)
Rights: http://www.lse.ac.uk/library/usingTheLibrary/academicSupport/OA/depositYourResearch.aspx
Date Deposited: 24 Feb 2012 10:36
URL: http://eprints.lse.ac.uk/42027/

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