Multinational Firms' Entry and Productivity: Some Aggregate Implications of Firm-level Heterogeneity

Contessi, Silvio

doi:10.24149/gwp248

Cited by 3 publications

(2 citation statements)

References 27 publications

(48 reference statements)

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“…Establishment transitions into multinational status are endogenous outcomes and occur either when an entire firm becomes a multinational by acquiring an establishment abroad or when a multinational purchases an establishment from a non-multinational. Standard models of multinational production such as Helpman, Melitz, and Yeaple (2004) and Contessi (2015) suggest that transitions occur after positive idiosyncratic productivity shocks. Greater productivity (and similarly demand) makes it worthwhile for firms to pay the fixed costs of multinational production.…”

Section: Evidence Using An Event-study Frameworkmentioning

confidence: 99%

Multinationals, Offshoring, and the Decline of U.S. Manufacturing

2017

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We provide three new stylized facts that characterize the role of multinationals in the U.S. manufacturing employment decline, using a novel microdata panel from 1993-2011 that augments U.S. Census data with firm ownership information and transaction-level trade. First, over this period, U.S. multinationals accounted for 41% of the aggregate manufacturing decline, disproportionate to their employment share in the sector. Second, U.S. multinational-owned establishments had lower employment growth rates than a narrowly-defined control group. Third, establishments that became part of a multinational experienced job losses, accompanied by increased foreign sourcing of intermediates by the parent firm. To establish whether imported intermediates are substitutes or complements for U.S. employment, we develop a model of input sourcing and show that the employment impact of foreign sourcing depends on a key elasticity -of firm size to production efficiency. Structural estimation of this elasticity finds that imported intermediates substitute for U.S. employment. In general equilibrium, our estimates imply a sizable manufacturing employment decline of 13%.

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Section: Evidence Using An Event-study Frameworkmentioning

confidence: 99%

Multinationals, Offshoring, and the Decline of U.S. Manufacturing

2017

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“…La literatura que analiza los efectos de las empresas multinacionales sobre las economías receptoras, converge en que la entrada y operación de las MNC a través de la inversión extranjera directa contribuyen positivamente al mejoramiento de la productividad y el crecimiento de la economía local (Contessi, 2015), indiferente del tipo de relación que se establezca entre las empresas.…”

Section: Efectos De Las Mnc En Una Relación De Colaboraciónunclassified

Strategic analysis of collaboration between national and multinational companies of software in Colombia using dynamics system

Morales

Velásquez

Beltrán

2016

Int. j. psychol. res.

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Palabras clave:multinacionales, industria de software, dinámica de sistemas, Colombia, psicología organizacional, innovación tecnológica.Las multinacionales de software son agentes económicos con el potencial de afectar drásticamente la dinámica de desarrollo de la industria doméstica en este sector. Tales efectos dependen del tipo de relación (de competencia o colaboración) establecida entre las empresas. Respecto a la relación de competencia, la literatura revela avances en su comprensión sistémica. Sin embargo, el análisis del comportamiento colaborativo entre empresas multinacionales y nacionales de software y sus efectos sobre el desarrollo de estas últimas ha avanzado poco, siendo notable en la literatura la ausencia de modelos de simulación para analizar el fenómeno. El propósito de este trabajo es hacer una contribución en esta dirección, utilizando la Dinámica de Sistemas como aproximación metodológica. Los resultados obtenidos ponen en evidencia las condiciones favorables y desfavorables para el establecimiento de una relación de colaboración con multinacionales, conduciendo a una mejor comprensión del fenómeno bajo estudio y propiciando la formulación e implantación de estrategias más exitosas de crecimiento de la industria. ABSTRACTKey words: multinationals software companies, software industry, dynamics system, Colombia, Industrial and organizational psychology, technology innovation.The multinationals software companies are economic agents with the potential of affecting drastically the dynamics of development of the domestic industry in this sector. These effects depend on the type of relationship (competition or cooperation) between the companies. On the relationship of competition, the literature reveals progress in their systemic understanding. However, the analysis of collaborative behavior among national and multinational software companies and their effects on the development of the latter has advanced little, being notable in the literature the absence of simulation models to analyze the phenomenon. The purpose of this work is to make a contribution in this way, using the system dynamics as a methodological approach. The results obtained

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Time–frequency characterization of the U.S. financial cycle

Verona

2016

Economics Letters

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Despite an increase in research -motivated by the global financial crisis of 2007-08 -empirical studies on the financial cycle are rare compared to those on the business cycle. This paper adds some new evidence to this scarce literature by using a different empirical methodology -wavelet analysis -to extract financial cycles from the data. Our results confirm that the U.S. financial cycle is (much) longer than the business cycle, but we do not find strong evidence supporting the view that the financial cycle has lengthened during the Great Moderation period.

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Multinational Firms' Entry and Productivity: Some Aggregate Implications of Firm-level Heterogeneity

Cited by 3 publications

References 27 publications

Multinationals, Offshoring, and the Decline of U.S. Manufacturing

Multinationals, Offshoring, and the Decline of U.S. Manufacturing

Strategic analysis of collaboration between national and multinational companies of software in Colombia using dynamics system

Time–frequency characterization of the U.S. financial cycle

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