Publication: Foreign direct investment and spillovers through workers' mobility
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Publication date
2001
Defense date
Advisors
Tutors
Journal Title
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Volume Title
Publisher
Elsevier
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Export
Abstract
We analyze a model where a multinational fir can use a superior technology in a
foreign subsidiary only after training a local worker. Technological spillovers from foreign
direct investment arise when this worker is later hired by a local firm Pecuniary spillovers
arise when the foreign affiliat pays the trained worker a higher wage to prevent her from
moving to a local competitor. We study conditions under which these spillovers occur. We
also show that the multinational fir might fin it optimal to export instead of investing
abroad to avoid dissipation of its intangible assets or the payment of a higher wage to the
trained worker.
Description
Keywords
Multinational corporations, Externalities, Spillovers, Training, Labor movility
Bibliographic citation
Journal of International Economics, 2001, v. 53, nº 1, pp. 205-222