Excerpt

Selection and Market Reallocation: Productivity Gains from Multinational Production, Laura Alfaro, September 2014 , Paper, "Quantifying the productivity gains from multinational production has been a vital topic of economic research. Positive productivity gains are often attributed to within-firm productivity improvements due to positive spillovers from multinational to domestic firms. An alternative, less emphasized explanation is between-firm selection and market reallocation, whereby competition from multinationals leads to factor reallocation and the survival of only the most productive domestic firms..." Link