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Learning on the quick and cheap: gains from trade through imported expertise

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dc.creator Markusen, James R.
dc.creator Rutherford, Thomas F.
dc.date 2005
dc.date.accessioned 2013-10-16T07:05:25Z
dc.date.available 2013-10-16T07:05:25Z
dc.date.issued 2013-10-16
dc.identifier http://hdl.handle.net/10419/19522
dc.identifier ppn:487740432
dc.identifier RePEc:zbw:bubdp1:3373
dc.identifier.uri http://koha.mediu.edu.my:8181/xmlui/handle/10419/19522
dc.description Gains from productivity and knowledge transmission arising from the presence of foreign firms has received a good deal of empirical attention, but micro-foundations for this mechanism are weak . Here we focus on production by foreign experts who may train domestic unskilled workers who work with them. Gains from training can in turn be decomposed into two types: (a) obtaining knowledge and skills at a lower cost than if they are self-taught at home, (b) producing domestic skilled workers earlier in time than if they the domestic economy had to rediscover the relevant knowledge through "reinventing the wheel". We develop a three-period model in which the economy initially has no skilled workers. Workers can withdraw from the labor force for two periods of self study and then produce as skilled workers in the third period. Alternatively, foreign experts can be hired in period 1 and domestic unskilled labor working with the experts become skilled in the second period. We analyze how production, training, and welfare depend on two important parameters: the cost of foreign experts and the learning (or "absorptive") capacity of the domestic economy.
dc.language eng
dc.relation Discussion paper Series 1 / Volkswirtschaftliches Forschungszentrum der Deutschen Bundesbank 2005,14
dc.rights http://www.econstor.eu/dspace/Nutzungsbedingungen
dc.subject F13
dc.subject F23
dc.subject ddc:330
dc.subject learning
dc.subject transmission mechanism
dc.subject multinationals
dc.subject imported
dc.subject Wissenstransfer
dc.subject Qualifikation
dc.subject Aussenwirtschaft
dc.subject Facharbeiter
dc.title Learning on the quick and cheap: gains from trade through imported expertise
dc.type doc-type:workingPaper


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