Guadalupe, Maria; Kuzmina, Olga; Thomas, Catherine - In: American Economic Review 102 (2012) 7, pp. 3594-3627
This paper uses a rich panel dataset of Spanish manufacturing firms (1990-2006) and a propensity score reweighting … estimator to show that multinational firms acquire the most productive domestic firms, which, on acquisition, conduct more … technologies, leading to higher productivity. We propose a model of endogenous selection and innovation in heterogeneous firms that …