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
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
This work is licensed under a Creative Commons Attribution 4.0 License.
Repository Citation
Malikov, E.,
Zhao, S.
(2022).
On the Estimation of Cross-Firm Productivity Spillovers with an Application to FDI.
2022 AEA/ASSA Virtual Annual Meeting
1-72.
American Economic Association.
https://digitalscholarship.unlv.edu/econ_fac_articles/138