FDI and Superstar Spillovers: Evidence from firm-to-firm transactions
FDI and Superstar Spillovers: Evidence from firm-to-firm transactions, co-authored with Cedric Duprez, Jozef Konings, and John Van Reenen.
Mary Amiti of the Federal Reserve Bank of New York presented her paper in-person at the Productivity Commission, Melbourne and online for virtual attendees.
Abstract Using firm-to-firm transactions, we show that starting to supply a 'superstar' firm (large domestic firms, exporters and multinationals) boosts productivity by 8% in the medium run.
Placebos on starting relationships with smaller firms and novel identification strategies support a causal interpretation of superstar spillovers. Consistent with a model of technology transfer, we find falls in markups and bigger treatment effects from technology-intensive superstars. We also show that the increase in new buyers is particularly strong within the superstar firm's network, a “dating agency” effect. This suggests an important role for raising productivity through superstars' supply chains regardless of their multinational status. Read the Full Paper.
About our Speaker
Mary Amiti is the head of Labor and Product Market Studies within the Monetary Policy Research Division. Prior to joining the Bank, she held positions at the International Monetary Fund, World Bank, the University of Melbourne, and the University of Pompeu Fabra. She graduated with a PhD in Economics from the London School of Economics in 1997, with a specialization in international trade. She has published in leading journals such as the American Economic Review, Quarterly Journal of Economics, Review of Economic Studies, Review of Economics and Statistics, and Journal of International Economics. Her research interests include trade finance, the effects of trade liberalization on productivity, wages, the wage skill premium, and product quality.
