The Causal Effects of Exporting and Multinational Acquisitions on TFP in UK. An Evaluation Method Approach

Research output: Working paper

Abstract

This paper assesses the effect on total factor productivity (TFP) of a change in the status of a firm from domestic producer to either exporter or subsidiary of a multinational firm. It is an extension of earlier work that looks solely on the effect of exporting on TFP (Girma et al, 2003 and 2004 and Wagner, 2002). In particular, it estimates the differences in TFP between domestic, exporting firms or subsidiaries of multinationals after controlling for the likely presence of endogeneity using the Multiple Treatment Approach (Blundell and Costa Dias, 2000 and Lechner, 2001). Results show that firms that have become exporters experience higher TFP, between 7.8% and 8.8%, with respect to domestic producers. Productivity gains were also experienced for firms acquired by multinationals relative to domestic producers ranging from 11.5% to 13%. Finally, exporters have a lower annual TFP compared to firms acquired by multinationals by around 10 percentage points.
Original languageEnglish
PublisherUniversity of Nottingham
Volume2008/16
Publication statusPublished - 2008

Publication series

NameGEP Research Paper Series

Fingerprint

Exporting
Evaluation method
Total factor productivity
Causal effect
Multinationals
Exporters
Subsidiaries
Multinational firms
Endogeneity
Productivity

Bibliographical note

© 2008 The Author

Cite this

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abstract = "This paper assesses the effect on total factor productivity (TFP) of a change in the status of a firm from domestic producer to either exporter or subsidiary of a multinational firm. It is an extension of earlier work that looks solely on the effect of exporting on TFP (Girma et al, 2003 and 2004 and Wagner, 2002). In particular, it estimates the differences in TFP between domestic, exporting firms or subsidiaries of multinationals after controlling for the likely presence of endogeneity using the Multiple Treatment Approach (Blundell and Costa Dias, 2000 and Lechner, 2001). Results show that firms that have become exporters experience higher TFP, between 7.8{\%} and 8.8{\%}, with respect to domestic producers. Productivity gains were also experienced for firms acquired by multinationals relative to domestic producers ranging from 11.5{\%} to 13{\%}. Finally, exporters have a lower annual TFP compared to firms acquired by multinationals by around 10 percentage points.",
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The Causal Effects of Exporting and Multinational Acquisitions on TFP in UK. An Evaluation Method Approach. / Delis, Angelos.

University of Nottingham, 2008. (GEP Research Paper Series).

Research output: Working paper

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T1 - The Causal Effects of Exporting and Multinational Acquisitions on TFP in UK. An Evaluation Method Approach

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N2 - This paper assesses the effect on total factor productivity (TFP) of a change in the status of a firm from domestic producer to either exporter or subsidiary of a multinational firm. It is an extension of earlier work that looks solely on the effect of exporting on TFP (Girma et al, 2003 and 2004 and Wagner, 2002). In particular, it estimates the differences in TFP between domestic, exporting firms or subsidiaries of multinationals after controlling for the likely presence of endogeneity using the Multiple Treatment Approach (Blundell and Costa Dias, 2000 and Lechner, 2001). Results show that firms that have become exporters experience higher TFP, between 7.8% and 8.8%, with respect to domestic producers. Productivity gains were also experienced for firms acquired by multinationals relative to domestic producers ranging from 11.5% to 13%. Finally, exporters have a lower annual TFP compared to firms acquired by multinationals by around 10 percentage points.

AB - This paper assesses the effect on total factor productivity (TFP) of a change in the status of a firm from domestic producer to either exporter or subsidiary of a multinational firm. It is an extension of earlier work that looks solely on the effect of exporting on TFP (Girma et al, 2003 and 2004 and Wagner, 2002). In particular, it estimates the differences in TFP between domestic, exporting firms or subsidiaries of multinationals after controlling for the likely presence of endogeneity using the Multiple Treatment Approach (Blundell and Costa Dias, 2000 and Lechner, 2001). Results show that firms that have become exporters experience higher TFP, between 7.8% and 8.8%, with respect to domestic producers. Productivity gains were also experienced for firms acquired by multinationals relative to domestic producers ranging from 11.5% to 13%. Finally, exporters have a lower annual TFP compared to firms acquired by multinationals by around 10 percentage points.

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