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Spillovers From Foreign Firms Through Worker Mobility: An Empirical Investigation


Holger Gorg


Kiel Institute for the World Economy; Institute for the Study of Labor (IZA)

Eric Strobl


Ecole Polytechnique, Paris - Department of Economic Sciences; Institute for the Study of Labor (IZA)

October 2002

IZA Discussion Paper No. 591

Abstract:     
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

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Date posted: October 21, 2002  

Suggested Citation

Gorg, Holger and Strobl, Eric, Spillovers From Foreign Firms Through Worker Mobility: An Empirical Investigation (October 2002). IZA Discussion Paper No. 591. Available at SSRN: http://ssrn.com/abstract=341480

Contact Information

Holger Görg (Contact Author)
Kiel Institute for the World Economy ( email )
P.O. Box 4309
Kiel, D-24100
Germany
Institute for the Study of Labor (IZA)
P.O. Box 7240
Bonn, D-53072
Germany
Eric Strobl
Ecole Polytechnique, Paris - Department of Economic Sciences ( email )
Ecole Polytechnique
Department of Economics
Paris, 75005
France
Institute for the Study of Labor (IZA)
P.O. Box 7240
Bonn, D-53072
Germany
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