"On the Estimation of Cross-Firm Productivity Spillovers with an Applic" by Emir Malikov and Shunan Zhao
 

Document Type

Article

Publication Date

1-7-2022

Publication Title

2022 AEA/ASSA Virtual Annual Meeting

Publisher

American Economic Association

First page number:

1

Last page number:

72

Abstract

We develop a novel methodology for the proxy variable identification of firm productivity in the presence of productivity-modifying learning and spillovers which facilitates a unified "internally consistent" analysis of the spillover effects between firms. Contrary to the popular two-step empirical approach, ours does not postulate contradictory assumptions about firm productivity across the estimation steps. Instead, we explicitly accommodate crosssectional dependence in productivity induced by spillovers which facilitates identification of both the productivity and spillover effects therein simultaneously. We apply our model to study cross-firm spillovers in China’s electric machinery manufacturing, with a particular focus on productivity effects of inbound FDI.

Keywords

productivity spillovers; production function; proxy variable; FDI spillovers

Disciplines

Business | Economics

File Format

PDF

File Size

916 KB

Language

English

Rights

IN COPYRIGHT. For more information about this rights statement, please visit http://rightsstatements.org/vocab/InC/1.0/

Creative Commons License

Creative Commons Attribution 4.0 License
This work is licensed under a Creative Commons Attribution 4.0 License.


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