Working Paper: NBER ID: w31128
Authors: Mary Amiti; Cedric Duprez; Jozef Konings; John Van Reenen
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.
Keywords: FDI; Superstar Firms; Productivity Spillovers
JEL Codes: F21; F23; O30
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| starting to supply a superstar firm (L14) | increase in total factor productivity (TFP) (O49) |
| relationship with superstar firm (L14) | increase in total factor productivity (TFP) (O49) |
| superstar firm is technology-intensive (L63) | increase in total factor productivity (TFP) (O49) |
| relationship with smaller firms (L14) | no observed productivity effects (O49) |
| pre-existing productivity trends (O49) | no impact on productivity increase from superstar relationship (D29) |