Ownership Structure and Productivity of Multinationals

• 成果类型: Article
• 署名作者: Bircan, Cagatay
• 署名单位: European Bank of Reconstructon & Development
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2018.11.005
• 发表日期: 2019
• 页码: 125-143
• 关键词: productivity; acquisitions; Ownership structure; Foreign direct investment

摘要

We examine the ownership structure and productivity of multinational affiliates and their effects on domestic industry. We first separate plant-level efficiency into a physical productivity and a price component. Multinationals target plants with high prices and markups. Upon acquisition they raise physical productivity but lower prices, leaving markups unchanged, especially when they are majority owners. This pro-competitive effect means that multinationals' productivity effects may be previously under-estimated. Multinational presence in an industry increases physical productivity while lowering prices at domestic firms, especially when majority owned affiliates are present. Ownership structure and foreign acquisitions therefore play an important role in driving aggregate productivity growth. (C) 2018 Elsevier B.V. All rights reserved.