Scandinavian Working Papers in Economics

Working Paper Series,
Research Institute of Industrial Economics

No 519: Multinationals, Endogenous Growth and Technological Spillovers: Theory and Evidence

Henrik Braconier, Richard E. Baldwin and Rikard Forslid
Additional contact information
Henrik Braconier: The Research Institute of Industrial Economics, Postal: P.O. Box 55665, SE-102 15 Stockholm, Sweden
Richard E. Baldwin: Graduate Institute of International Studies, Geneva
Rikard Forslid: Lund University, Postal: P.O. Box 117, SE-221 00 Lund, Sweden

Abstract: FDI has received surprisingly little attention in theoretical and empirical work on openness and growth. This paper presents a theoretical growth model where MNCs directly affect the endogenous growth rate via technological spillovers. This is novel since other endogenous growth models with MNCs, e.g. the Grossman-Helpman model, assume away the knowledge-spillovers aspect of FDI. We also present econometric evidence (using industry-level data from seven OECD nations) that broadly supports the model. Specifically, we find industry-level scale effects and international knowledge spillovers that are unrelated to FDI, but we also find that bilateral spillovers are boosted by bilateral FDI.

Keywords: MNCs; Economic growth; R&D

JEL-codes: F12; O32; O41

25 pages, April 1, 1999

Full text files 

iuiwop0519.new.pdf.zip PDF-file Full text
iuiwop0519.new.pdf PDF-file Full text
iuiwop0519.new.ps.zip PostScript file Full text
iuiwop0519.new.ps PostScript file Full text

Download statistics

Questions (including download problems) about the papers in this series should be directed to Elisabeth Gustafsson ()
Report other problems with accessing this service to Sune Karlsson ().

RePEc:hhs:iuiwop:0519This page generated on 2024-09-13 22:15:48.