Essays in Multinational Firms and Productivity Growth of Domestically-Owned Firms
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ndltd-OhioLink-oai-etd.ohiolink.edu-osu13968866582021-08-03T06:23:34Z Essays in Multinational Firms and Productivity Growth of Domestically-Owned Firms Choi, Hye Lin Economics Differences in income across countries are largely explained by productivity variations, and a large variation in productivity is as much due to foreign as to domestic innovation. Among others, foreign direct investment (FDI) and trade have long been suspected to be major conduits of international technology transfer. Since multinational firms are well known to be larger and more productive and to do more R&D than purely domestically-owned firms, they may have advanced technology and the entry of multinational firms may transfer their modern technology to domestic firms. Also, there are plausible mechanisms through which advanced technology of multinational firms is transferred to the domestic firms such as worker turnover, product imitation, and vertical backward/forward linkages. However, even though economists and policy makers have devoted considerable attention to the technology spillovers from foreign to domestic firms based on plausible arguments for positive impacts from multinational firms, they have not come to a common conclusion. In my first chapter, “Multinational Enterprises and Productivity Growth of Domestic Firms: Firm-Level Evidence from Canada”, I estimate FDI spillovers to Canada manufacturing firms between 1994 and 2005. In order to measure productivity more properly, I adopt the Olley-Pakes method, and I apply instrumental variable estimation to solve endogeneity problem. My results suggest that there are substantial positive within-industry spillovers by FDI. In addition, my results show that larger firms benefit more from FDI spillovers and the spillovers mainly occur within low-tech industries. Those results contrast with earlier work, indicating that earlier work cannot be generalized to other countries and periods. In the second chapter, “Knowledge Spillovers through Multinational Firms in High-Tech and Low-Tech Industries” in order to have a deep understanding of the complex FDI knowledge spillovers, I disaggregate the total spillovers into high- and low-tech industries, in contrast with earlier work that have only examined its aggregate spillovers. Also, I develop a simple theory to explain the mechanism through which new technology of the foreign firms is transmitted to the domestic firms by analyzing the endogenous decision of multinational firms on the location of production of intermediate goods. The model shows different patterns of knowledge spillovers in the high- and low-tech industries: immediate catch-up to the foreign firm's advanced technology but unsustainable technology spillovers in the low-tech sectors while slow catch-up to the foreign firm's technology but continual knowledge spillovers in the high-tech sectors. The U.S. data for the years 1987-1995, broken down into high- and low-tech industries, support the model. The pattern of knowledge spillovers in the high- and low-tech industries are hump-shaped, but in low-tech industries it reaches its peak after a sharp increase while in the high-tech industries it hits its peak following a smooth increase. 2014-08-21 English text The Ohio State University / OhioLINK http://rave.ohiolink.edu/etdc/view?acc_num=osu1396886658 http://rave.ohiolink.edu/etdc/view?acc_num=osu1396886658 unrestricted This thesis or dissertation is protected by copyright: all rights reserved. It may not be copied or redistributed beyond the terms of applicable copyright laws. |
| collection |
NDLTD |
| language |
English |
| sources |
NDLTD |
| topic |
Economics |
| spellingShingle |
Economics Choi, Hye Lin Essays in Multinational Firms and Productivity Growth of Domestically-Owned Firms |
| author |
Choi, Hye Lin |
| author_facet |
Choi, Hye Lin |
| author_sort |
Choi, Hye Lin |
| title |
Essays in Multinational Firms and Productivity Growth of Domestically-Owned Firms |
| title_short |
Essays in Multinational Firms and Productivity Growth of Domestically-Owned Firms |
| title_full |
Essays in Multinational Firms and Productivity Growth of Domestically-Owned Firms |
| title_fullStr |
Essays in Multinational Firms and Productivity Growth of Domestically-Owned Firms |
| title_full_unstemmed |
Essays in Multinational Firms and Productivity Growth of Domestically-Owned Firms |
| title_sort |
essays in multinational firms and productivity growth of domestically-owned firms |
| publisher |
The Ohio State University / OhioLINK |
| publishDate |
2014 |
| url |
http://rave.ohiolink.edu/etdc/view?acc_num=osu1396886658 |
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