The rising dominance of large firms in many industrialised countries over the last few decades has received much attention, largely focusing on the potential negative effects of this increased market concentration. Using data from Belgium to investigate whether large firms also generate positive effects, Mary Amiti, Cedric Duprez, Jozef Konings and John Van Reenen find that such firms generate significant positive total factor productivity spillovers to their domestic suppliers, and that being global is not necessary to generate these spillovers, with large domestic firms generating spillovers of the same magnitude as multinationals.

---

31 October 2023

---

Vox EU

---

https://cepr.org/voxeu/columns/large-firms-generate-positive-productivity-spillovers

This Blog is published under the centre's Growth programme.

This publication comes under the following theme: Management practices and productivity