Suppliers of multinationals and the forced linkage effect: Evidence from firm level data

Arbeitspapier

Using information on more than 1000 firms in a number of emerging countries, we find quantitative evidence that suppliers of multinationals that are pressured by their customers to reduce production costs or develop new products have higher productivity growth than other firms, including other host country suppliers of multinationals. These findings provide first empirical support for a 'forced linkage effect' from supplying multinational companies. Our findings hold controlling for other factors within and outside the supplier- customer relationship and when endogeneity concerns are taken into consideration.

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• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Kiel Working Paper ; No. 1822

Classification and Topics

• Classification: Wirtschaft ; Multinational Firms; International Business ; Microeconomic Analyses of Economic Development
• Subject: backward linkages ; multinational customers ; suppliers ; forced linkage

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Godart, Olivier N. ; Görg, Holger
• Event: Veröffentlichung
• (who): Kiel Institute for the World Economy (IfW)
• (where): Kiel
• (when): 2013

Further information

• Handle: http://hdl.handle.net/10419/68611