FDI and Superstar Spillovers: Evidence from Firm-to-Firm Transactions
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.
Published Versions
Mary Amiti & Cédric Duprez & Jozef Konings & John Van Reenen, 2024. "FDI and superstar spillovers: Evidence from firm-to-firm transactions," Journal of International Economics, vol 152.
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