Multinationals, R&D and productivity: Evidence for UK Manufactoring firms

Identifier:  PC:4732

Handle: https://hdl.handle.net/20.500.11797/PC4732

Authors:  Máñez, Juan A.; Manjón Antolín, Miguel C.; Añón Higón, Dolores

Abstract:
In this study we analyze multinationality (domestic-based firms vs. multinationals) and foreignness (foreign vs. domestic firms) effects in the returns of R&D to productivity. We follow a two-step strategy. In the first step, we consistently ''s productivity by GMM and numerically compute the sample distribution of the R&D returns. In the second step, we use stochastic dominance techniques to make inferences on the multinationality and foreignness effects. Results for a panel of UK manufacturing firms suggest that multinationality and foreignness effects operate in an opposite way: whilst the multinationality effect enhances R&D returns, the foreignness diminishes them.