Teaching locals new tricks: Foreign experts as a channel of knowledge transfers

Gains from productivity and knowledge transmission arising from the presence of foreign firms have received a good deal of empirical attention, but theoretical micro-foundations for this mechanism are limited. Here we develop a model in which foreign experts may train domestic workers who work with...

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Veröffentlicht in:Journal of development economics 2009, Vol.88 (1), p.120-131
Hauptverfasser: Markusen, James R., Trofimenko, Natalia
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creator Markusen, James R.
Trofimenko, Natalia
description Gains from productivity and knowledge transmission arising from the presence of foreign firms have received a good deal of empirical attention, but theoretical micro-foundations for this mechanism are limited. Here we develop a model in which foreign experts may train domestic workers who work with them. Hypotheses are generated under the assumptions that workers learn from experts (the effect of using an expert is not strictly temporary) and that this learning is embodied in the workers rather than in the firm. We use fixed effects and nearest neighbor matching estimators on a panel of plant-level data for Colombia that identifies the use of foreign experts, to show that these experts have substantial and persistent positive effects (though not always immediate) on the wages of domestic workers and on the value added per worker.
doi_str_mv 10.1016/j.jdeveco.2008.02.002
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subjects Colombia
Economic models
Estimating techniques
Experts
F4 O19 O47 Productivity Transmission mechanism Learning Spillovers Foreign experts
Foreign experts
Foreigners
Knowledge management
Knowledge transfer
Learning
O19
O47
Productivity
Spillovers
Studies
Transmission mechanism
Workers
title Teaching locals new tricks: Foreign experts as a channel of knowledge transfers
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