Spillovers From Foreign Firms Through Worker Mobility: An Empirical Investigation
Kiel Institute for the World Economy; Institute for the Study of Labor (IZA)
Ecole Polytechnique, Paris - Department of Economic Sciences; Institute for the Study of Labor (IZA)
IZA Discussion Paper No. 591
While there has been a large empirical literature on productivity spillovers from foreign to domestic firms this literature treats the channels through which these spillover effects work as a black box. This paper attempts to fill this gap in the literature. Our results suggest that firms which are run by owners that worked for multinationals in the same industry immediately prior to opening up their own firm have higher productivity growth than other domestic firms. This suggests that these entrepreneurs bring with them some of the knowledge accumulated in the multinational which can be usefully employed in the domestic firm. We do not find any positive effects on firm level productivity if the owner had experience in multinationals in other industries, or received training by multinationals.
Number of Pages in PDF File: 25
Keywords: Foreign Direct Investment, Spillovers, Worker Mobility, Training
JEL Classification: F21, F23, J61
Date posted: October 21, 2002
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