Authors: Roberto Alvarez, Gustavo Crespi
Addresses: Central Bank of Chile Santiago, Chile. ' International Development Research Centre Innovation, Policy and Science (IPS), Montevideo, Uruguay
Abstract: In this paper, we study Total Factor Productivity (TFP) catching-up using 20 years of plant-level data for Chilean manufacturing. This paper addresses two key issues: first, we analyse whether there is evidence that low-productivity plants experience higher TFP growth than those closer to the technology frontier. Second, we investigate the role of multinational plants in accelerating the catching-up process by non-frontier domestic plants. Our results show evidence of productivity catching-up, and that a larger presence of multinationals positively contributes to this phenomenon. These findings are consistent with the idea of technology spillovers from high to low-productivity plants or that a higher presence of multinationals increase competitiveness and productivity in domestic markets.
Keywords: technology transfer; total factor productivity; TFP; catching-up; multinational corporations; MNCs; Chile; manufacturing plants.
International Journal of Technological Learning, Innovation and Development, 2007 Vol.1 No.2, pp.136 - 152
Available online: 14 Oct 2007 *Full-text access for editors Access for subscribers Purchase this article Comment on this article