Nottingham Centre for Research on
Globalisation and Economic Policy (GEP)

GEP Research Paper 00/14

Multinationals and Export Spillovers

Nuno Sousa, David Greenaway and Katharine Wakelin

Abstract

This paper focuses on the under-explored area of export spillovers from MNEs to domestic firms. It is possible for a domestic firm to become more export oriented in response to the activities of MNEs' subsidiaries in the host country. We identify three channels through which this may occur, namely export information externalities, increased competition in the domestic market and demonstration effects. We then investigate this empirically for the United Kingdom, using a large firm-level dataset of 3662 firms from 1992 to 1996. Our results confirm positive spillover effects from MNEs on the decision to export of UK-owned firms as well as on their export propensity. It is also clear from our results that the main channel for this phenomenon is increased competition.

Issued in September 2000.

This paper is available in PDF format .

Nottingham Centre for Research on Globalisation and Economic Policy

Sir Clive Granger Building
University of Nottingham
University Park
Nottingham, NG7 2RD

Enquiries: hilary.hughes@nottingham.ac.uk