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Multinational firms and productivity catching-up: the case of Chilean manufacturing

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  • Roberto Alvarez
  • Gustavo Crespi

Abstract

In this paper, we study Total Factor Productivity (TFP) catching-up using 20 years of plant-level data for Chilean manufacturing. This paper addresses two key issues: first, we analyse whether there is evidence that low-productivity plants experience higher TFP growth than those closer to the technology frontier. Second, we investigate the role of multinational plants in accelerating the catching-up process by non-frontier domestic plants. Our results show evidence of productivity catching-up, and that a larger presence of multinationals positively contributes to this phenomenon. These findings are consistent with the idea of technology spillovers from high to low-productivity plants or that a higher presence of multinationals increase competitiveness and productivity in domestic markets.

Suggested Citation

  • Roberto Alvarez & Gustavo Crespi, 2007. "Multinational firms and productivity catching-up: the case of Chilean manufacturing," International Journal of Technological Learning, Innovation and Development, Inderscience Enterprises Ltd, vol. 1(2), pages 136-152.
    • Handle: RePEc:ids:ijtlid:v:1:y:2007:i:2:p:136-152
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    Cited by:

    1. Crespi, Gustavo & Figal Garone, Lucas & Maffioli, Alessandro & Stein, Ernesto, 2020. "Public support to R&D, productivity, and spillover effects: Firm-level evidence from Chile," World Development, Elsevier, vol. 130(C).
    2. Tommaso Ciarli & Alex Coad & Alessio Moneta, 2019. "Exporting and productivity as part of the growth process: Causal evidence from a data-driven structural VAR," LEM Papers Series 2019/39, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    3. Iacovone, Leonardo, 2012. "The better you are the stronger it makes you: Evidence on the asymmetric impact of liberalization," Journal of Development Economics, Elsevier, vol. 99(2), pages 474-485.
    4. Amoroso, Sara & Martino, Roberto, 2020. "Regulations and technology gap in Europe: The role of firm dynamics," European Economic Review, Elsevier, vol. 129(C).
    5. Dolores An~o´n Higo´n & Juan A. Man~ez & Mari´a E. Rochina-Barrachina & Amparo Sanchis & Juan A. Sanchis-Llopis, 2017. "The determinants of firms’ convergence to the European TFP frontier," Working Papers 1707, Department of Applied Economics II, Universidad de Valencia.
    6. Ciarli, Tommaso & Coad, Alex & Moneta, Alessio, 2023. "Does exporting cause productivity growth? Evidence from Chilean firms," Structural Change and Economic Dynamics, Elsevier, vol. 66(C), pages 228-239.
    7. Dolores An~o´n Higo´n & Juan A. Man~ez & Mari´a E. Rochina-Barrachina & Amparo Sanchis & Juan A. Sanchis, 2018. "Follow the leader: Evidence of the Productivity catch-up of European firms," Working Papers 1806, Department of Applied Economics II, Universidad de Valencia.
    8. Crespi, Gustavo & Figal Garone, Lucas & Maffioli, Alessandro & Stein, Ernesto H., 2019. "Innovation, Productivity, and Spillover Effects: Evidence from Chile," IDB Publications (Working Papers) 9464, Inter-American Development Bank.
    9. Vergara, Sebastián, 2013. "The performance of transnational corporations: Evidence for the manufacturing industry in Chile," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    10. Hansen, Thorsten, 2010. "Tariff Rates, Offshoring and Productivity: Evidence from German and Austrian Firm-Level Data," Discussion Papers in Economics 11465, University of Munich, Department of Economics.
    11. Dolores Añón Higón & Juan A. Máñez & María E. Rochina-Barrachina & Amparo Sanchis & Juan A. Sanchis, 2022. "Firms’ distance to the European productivity frontier," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 12(2), pages 197-228, June.
    12. Hansen, Thorsten, 2010. "Exports and Productivity: An Empirical Analysis of German and Austrian Firm-Level Performance," Discussion Papers in Economics 11466, University of Munich, Department of Economics.

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