On the Estimation of Cross-Firm Productivity Spillovers with an Application to FDI

• 成果类型: Article
• 署名作者: Malikov, Emir; Zhao, Shunan
• 署名单位: Nevada System of Higher Education (NSHE); University of Nevada Las Vegas; Oakland University
• 刊物名称: REVIEW OF ECONOMICS AND STATISTICS
• ISSN/ISSBN: 0034-6535
• DOI: 10.1162/rest_a_01080
• 发表日期: 2023-09
• 页码: 1207-1223
• 关键词: FOREIGN DIRECT-INVESTMENT; research-and-development; domestic firms; identification; models; transfers; IMPACT; TRADE; US

摘要

We develop a novel methodology for the proxy variable identification of firm productivity in the presence of productivity-modifying learning and spillovers, which facilitates a unified internally consistent analysis of the spillover effects among firms. Contrary to the popular two-step empirical approach, ours does not postulate contradictory assumptions about firm productivity across the estimation steps. Instead, we explicitly accommodate cross-sectional dependence in productivity induced by spillovers, which facilitates identification of both the productivity and spillover effects simultaneously. We apply our model to study cross-firm spillovers in China's electric machinery manufacturing, with a particular focus on productivity effects of inbound FDI.