Findings from Federal Reserve Bank Reveals New Findings on Technology (Fdi and Superstar Spillovers: Evidence From Firm-to-firm Transactions): Technology

2024 NOV 06 (NewsRx) -- By a News Reporter-Staff News Editor at Engineering Daily News -- Investigators publish new report on Technology. According to news reporting out of New York City, New York, by NewsRx editors, research stated, “Using firm-to-firm transactions, we show that starting to supply a ‘superstar’ firm (large domestic firms, exporters and multinationals) boosts productivity by 8% after three years. Placebos on starting relationships with smaller firms and novel identification strategies support a causal interpretation of ‘superstar spillovers.”

Financial supporters for this research include Methusalem grant, Economic & Social Research Council (ESRC).

Our news journalists obtained a quote from the research from Federal Reserve Bank, “Consistent with a model of technology transfer, we find bigger treatment effects from technology-intensive superstars and also falls in markups (in order to win superstar contracts). We also show that firms that start supplying superstar firms enjoy a ‘dating agency’ effect - an increase in the number of new buyers that is particularly strong within the superstar firm’s network.”

According to the news editors, the research concluded: “Taken together, the results suggest an important role for raising productivity through superstars’ supply chains regardless of multinational status.”

This research has been peer-reviewed.

For more information on this research see: Fdi and Superstar Spillovers: Evidence From Firm-to-firm Transactions. Journal of International Economics, 2024;152. Journal of International Economics can be contacted at: Elsevier, Radarweg 29, 1043 Nx Amsterdam, Netherlands. (Elsevier - www.elsevier.com; Journal of International Economics - http://www.journals.elsevier.com/journal-of-international-economics/)

Our news journalists report that additional information may be obtained by contacting Mary Amiti, Federal Reserve Bank, New York, NY 10045, United States. Additional authors for this research include Cedric Duprez, Jozef Konings and John Van Reenen.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1016/j.jinteco.2024.103972. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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