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Multinationals and domestic firms in France:who gains from knowledge spillovers?

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  • Pierre Blanchard

    (Université Paris-Est, ERUDITE (EA 437), UPEC,94010 Créteil, France)

  • Claude Mathieu

    (Université Paris-Est, ERUDITE (EA 437), UPEC,94010 Créteil, France)

Abstract

This paper aims to evaluate the direction, nature,and magnitude of spillovers between foreign-owned firmsand French firms from firm-level panel data. We estimateproduction functions at the firm level using the recent struc-tural techniques suggested in Ackerberg et al. (2006 ). Fromour results, three main conclusions can be drawn. First, spill-overs are at work in all research-intensive sectors, althoughthey have very weak effects in the less knowledge-based sec-tors. Second, foreign-owned firms belonging to high- andmedium-technology manufacturing industries that are set upin France benefit from horizontal spillovers, suggesting a tech-nology sourcing activity of foreign multinationals. Third, in-ward foreign investment increases the total factor productivityof French firms supplying inputs to multinationals (backwardspillovers) only in high- and medium-technology manufactur-ing industries and after 4 years.

Suggested Citation

  • Pierre Blanchard & Claude Mathieu, 2016. "Multinationals and domestic firms in France:who gains from knowledge spillovers?," Review of Agricultural, Food and Environmental Studies, INRA Department of Economics, vol. 97(2), pages 109-125.
    • Handle: RePEc:rae:jouraf:v:97:y:2016:i:2:p:109-125
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    References listed on IDEAS

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    2. H. Ben Hassine & F. Boudier & C. Mathieu, 2017. "The two ways of FDI R&D spillovers: evidence from the French manufacturing industry," Applied Economics, Taylor & Francis Journals, vol. 49(25), pages 2395-2408, May.
    3. Rama, Ruth, 2023. "Technological Transfer Channels of Food and Beverage Processing Multinationals to Host Countries: An Empirical Analysis," MPRA Paper 118162, University Library of Munich, Germany.
    4. Apostolov Mico & Scagnelli Simone Domenico, 2019. "Foreign-Versus Domestic-Owned firms in the Predicament ‘Cui bono?’," Business Systems Research, Sciendo, vol. 10(2), pages 18-36, September.

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    More about this item

    Keywords

    Productivity.FDI and reverse spillovers.Multinationals.Domestic firms.Panel data;

    JEL classification:

    • F2 - International Economics - - International Factor Movements and International Business
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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