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    MC Kinsey

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    JesusAlvarezValdes
    US multinationals contribute disproportionately to private-sector real GDP growth. The record of these companies on employment growth across sectors and business cycles is mixed. The report compares the contributions of US multinationals with overall economic activity.

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    MC Kinsey

    Uploaded by

    JesusAlvarezValdes
    68 views3 pages
    US multinationals contribute disproportionately to private-sector real GDP growth. The record of these companies on employment growth across sectors and business cycles is mixed. The report compares the contributions of US multinationals with overall economic activity.

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    McKinsey

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    US multinationals contribute disproportionately to private-sector real GDP growth. The record of these companies on employment growth across sectors and business cycles is mixed. The report compares the contributions of US multinationals with overall economic activity.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    68 views3 pages

    MC Kinsey

    Uploaded by

    JesusAlvarezValdes
    US multinationals contribute disproportionately to private-sector real GDP growth. The record of these companies on employment growth across sectors and business cycles is mixed. The report compares the contributions of US multinationals with overall economic activity.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    1

    J U N E 2010

    m c k i n s e y g l o b a l i n s t i t u t e

    How US multinationals drive


    economic growth

    As one of the primary sources of economic growth, US multinational


    corporations could provide insights into how to sustain the US
    economy over the long term.
    2

    US multinational companies contribute disproportionately to private-sector real


    GDP growth (or value added) and labor productivity. The record of these companies
    on employment growth across sectors and business cycles is mixed, however. These
    are the conclusions from a new McKinsey Global Institute (MGI) report, Growth and
    competitiveness in the United States: The role of its multinational companies. With
    the US economic recovery underway, government and business leaders are seeking to
    identify and nurture future sources of economic growth. In this report, MGI examines the
    contributions of US multinational corporations and the shifting global landscape in which
    they make decisions about where to participate and invest.

    While other researchers have analyzed narrower aspects of US multinational activity, this
    report provides a more complete picture by detailing this segment’s share of a range of
    measures linked directly to US economic growth and performance (exhibit). For the report,
    which compares the contributions of US multinationals with overall economic activity by
    sector and over time, MGI analyzed data, reviewed academic literature, drew on its prior
    research
    MGI 2010on sector competitiveness, and interviewed senior executives from 26 of the
    largest and most
    Multinational well-known
    companies US multinationals.
    teaser
    Exhibit 1 of 1

    Exhibit
    US multinational companies contribute disproportionately to
    several aspects of US economic activity
    % US multinational companies All other US companies

    Key indicators, Share of total


    2007 private-sector GDP 23 77

    Employment 19 81

    Exports 48 52

    Imports 37 63
    Trade deficit 22 78
    Private-sector R&D 74 26
    Globally competitive
    44 56
    sectors

    Compound annual growth


    rate (CAGR), 1990–2007

    Contributions Labor productivity 41 59 3.6 1.5


    to growth,
    1990–2007 Real private-
    31 69 4.5 2.9
    sector GDP
    Employment 11 89 0.7 1.5
    3

    Related thinking In 2007, US multinationals accounted for 23 percent of US private-sector GDP (or value
    added). Since 1990, however, they have been responsible for 31 percent of the growth in
    “Don’t blame trade for
    real GDP and 41 percent of gains in US labor productivity. Their outsized contributions
    US job losses”
    to productivity growth matter greatly because productivity increases have delivered
    “The power of productivity”
    nearly three-quarters of US real GDP growth since 2000, with the rest coming from
    employment gains—the reverse of the situation 30 years ago. Compared with other US
    “The truth about foreign companies, US multinationals are twice as concentrated in globally competitive sectors.
    direct investment in Since many corporations confront similar pressures and choices, US multinationals may
    emerging markets” provide insights into how other companies—and the economy as a whole—can respond to
    increasingly intense global competition.
    “Exploding the myths of
    offshoring”
    To read an executive summary or download the full report, visit mckinsey.com/mgi.

    Copyright © 2010 McKinsey & Company. All rights reserved.

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