Innovation in the Global Firm

Bilir, L. Kamran; Morales, Eduardo

doi:10.3386/w22160

Cited by 17 publications

(20 citation statements)

References 61 publications

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“…in the municipality of location of the firm. In columns 1 to 4, we classify firms on the basis of firm-specific labor and materials elasticities computed following the procedure in Bilir and Morales (2018). This table eliminates the specifications in the first two columns of Table 6, as these are not meaningful when ∆Ln(Total Sales) is the right-hand-side variable.…”

Section: H Regression Results With Total Sales Instead Of Domestic Salesmentioning

confidence: 99%

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Venting Out: Exports During a Domestic Slump

Almunia¹,

Antràs²,

López-Rodríguez³

et al. 2018

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, and LSE for useful comments. Finally, we particularly thank Oscar Arce for his continuous support throughout this project. All errors are our own. Any views expressed in this paper are only those of the authors and should not be attributed to the Banco de España, the Eurosystem, or the National Bureau of Economic Research. NBER working papers are circulated for discussion and comment purposes. They have not been peer-reviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications.

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Section: H Regression Results With Total Sales Instead Of Domestic Salesmentioning

confidence: 99%

“…σ = 5. Bilir and Morales (2018). The figure in panel (e) presents a binscatter illustrating the relationship in the boom period between our two estimates of the firm's log TFP.…”

Section: F2 Production Function Estimatesmentioning

confidence: 99%

Venting Out: Exports During a Domestic Slump

Almunia¹,

Antràs²,

López-Rodríguez³

et al. 2018

Self Cite

View full text Add to dashboard Cite

show abstract

“…Except for equation 5, all other equations from Section III.A still hold, with the convention p n i ≡ c n i . As demonstrated in Online Appendix A.3, this implies that equation (7) must hold as well, with Bilir and Morales (2018) provide evidence of productivity gains from R&D benefiting affiliates in different locations in the U.S. pharmaceutical industry. the two elasticities, β X and β M , still determined by the elasticities of supply and demand.…”

Section: Price Regulationsmentioning

confidence: 91%

The More We Die, The More We Sell? A Simple Test of the Home-Market Effect*

Costinot

Donaldson

Kyle

et al. 2019

The Quarterly Journal of Economics

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The home-market effect, first hypothesized by Linder (1961) and later formalized by Krugman (1980), is the idea that countries with larger demand for some products at home tend to have larger sales of the same products abroad. In this article, we develop a simple test of the home-market effect using detailed drug sales data from the global pharmaceutical industry. The core of our empirical strategy is the observation that a country's exogenous demographic composition can be used as a predictor of the diseases that its inhabitants are most likely to die from and, in turn, the drugs they are most likely to demand. We find that the correlation between predicted home demand and sales abroad is positive and greater than the correlation between predicted home demand and purchases from abroad. In short, countries tend to be net sellers of the drugs they demand the most, as predicted by Linder (1961) and Krugman (1980). JEL Codes: F1, O3.

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“…Second, and relatedly, our analysis focuses on spillover to domestic automakers conditioning on the existing set of products and technologies introduced by foreign automakers. Future work is needed to examine foreign automakers' incentives to introduce products and technology in light of global knowledge spillover (Buera and Oberfield, 2016;Bilir and Morales, 2016). Finally, the data coverage prevents us from evaluating the historical efficacy of quid pro quo, i.e., what would have happened if China did not have the policy from the beginning.…”

Section: Introductionmentioning

confidence: 99%

Quid Pro Quo, Knowledge Spillover, and Industrial Quality Upgrading: Evidence from the Chinese Auto Industry

Bai¹,

Barwick²,

Cao³

et al. 2020

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While there is a vast body of research on the benefits of FDI in developing countries, whether and how the form of FDI matters have received limited attention. This paper studies the impact of FDI via quid pro quo (technology for market access) on facilitating knowledge spillover and quality upgrading. Our context is the Chinese automobile industry, where foreign automakers are required to set up joint ventures (the "quid") with domestic automakers in return for market access (the "quo"). The identification strategy exploits a unique dataset of detailed vehicle quality measures along multiple dimensions and relies on within-product quality variation across dimensions. We show that affiliated domestic automakers adopt more similar quality strength as their joint ventures, compared to non-affiliated pairs. The results suggest that quid pro quo generates additional knowledge spillover to affiliated domestic automakers, on top of any industry-wide spillover. We rule out endogenous joint venture network formation, overlapping customer bases, or direct technology transfer via market transactions as alternative explanations. Analyses leveraging additional micro datasets on worker flows and shared upstream suppliers among automakers demonstrate that labor mobility and supplier network are important channels in mediating knowledge spillover. On the other hand, while quid pro quo facilitates learning, such a requirement is not a prerequisite for knowledge spillover. Counterfactual exercises show that quid pro quo is not the primary driver of the overall quality improvement experienced by domestic automakers.

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Innovation in the Global Firm

Cited by 17 publications

References 61 publications

Venting Out: Exports During a Domestic Slump

Venting Out: Exports During a Domestic Slump

The More We Die, The More We Sell? A Simple Test of the Home-Market Effect*

Quid Pro Quo, Knowledge Spillover, and Industrial Quality Upgrading: Evidence from the Chinese Auto Industry

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