Ownership Advantages, Foreign Production and Productivity: Evidence from Austrian Manufacturing Firms

Ownership Advantages, Foreign Production and Productivity: Evidence from Austrian Manufacturing... Multi-plant economies of scale generated by firm-specific assets form a constituent feature of multinational firms. This paper uses a panel of Austrian manufacturing firms to test for multi-plant economies of scale by examining the dependence of labor productivity in plants of the home country on the volume of foreign production. As there is an inherent causality problem in testing this proposition, the econometric estimates use a simultaneous equation framework. The estimation results indeed indicate that firms which operate plants abroad achieve productivity advantages in domestic plants. The same holds true for affiliates of foreign multinationals. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Review of Industrial Organization Springer Journals

Ownership Advantages, Foreign Production and Productivity: Evidence from Austrian Manufacturing Firms

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Publisher
Kluwer Academic Publishers
Copyright
Copyright © 1999 by Kluwer Academic Publishers
Subject
Economics; Industrial Organization; Microeconomics
ISSN
0889-938X
eISSN
1573-7160
D.O.I.
10.1023/A:1007779832246
Publisher site
See Article on Publisher Site

Abstract

Multi-plant economies of scale generated by firm-specific assets form a constituent feature of multinational firms. This paper uses a panel of Austrian manufacturing firms to test for multi-plant economies of scale by examining the dependence of labor productivity in plants of the home country on the volume of foreign production. As there is an inherent causality problem in testing this proposition, the econometric estimates use a simultaneous equation framework. The estimation results indeed indicate that firms which operate plants abroad achieve productivity advantages in domestic plants. The same holds true for affiliates of foreign multinationals.

Journal

Review of Industrial OrganizationSpringer Journals

Published: Oct 15, 2004

References

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