On the Estimation of Cross-Firm Productivity Spillovers with an Application to FDI

نویسندگان

چکیده

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

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ژورنال

عنوان ژورنال: The Review of Economics and Statistics

سال: 2021

ISSN: ['0034-6535', '1530-9142']

DOI: https://doi.org/10.1162/rest_a_01080