Multinationals, Endogenous Growth and Technological Spillovers: Theory and Evidence

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IUI Working Paper ; No. 519

Classification and Topics

• Classification: Wirtschaft ; Models of Trade with Imperfect Competition and Scale Economies; Fragmentation ; Management of Technological Innovation and R&D ; One, Two, and Multisector Growth Models
• Subject: MNCs ; Economic growth ; R&D ; Auslandsinvestition ; Multinationales Unternehmen ; Neue Wachstumstheorie ; Spillover-Effekt ; Innovationsdiffusion ; OECD-Staaten

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Braconier, Henrik ; Baldwin, Richard E. ; Forslid, Rikard
• Event: Veröffentlichung
• (who): The Research Institute of Industrial Economics (IUI)
• (where): Stockholm
• (when): 1999

Further information

• Handle: http://hdl.handle.net/10419/95092
• Last update: 10.03.2025, 11:41 AM CET