NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Internationalized Production in World Output

Robert E. Lipsey, Magnus Blomstrom, Eric Ramstetter

NBER Working Paper No. 5385 (Also Reprint No. r2261)
Issued in December 1995
NBER Program(s):   ITI

Internationalized production, that is, production by multinational firms outside their home countries has increased over the last two decades, but it was still, in 1990, only about 7 percent of world output. The share was higher, at 15 percent in 'industry,' including manufacturing, trade, construction, and public utilities, but it was negligible in 'services,' which are about 60 percent of world output. Given all the attention that 'globalization' has received from scholars, international organizations, and the press, these numbers are a reminder of how large a proportion of economic activity is confined to single geographical locations and home country ownership. Internationalization of production is clearly growing in importance, but the vast majority of production is still carried out by national producers within their own borders.

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Document Object Identifier (DOI): 10.3386/w5385

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