published in: Scandinavian Journal of Economics, 2005, 107 (4), 693-709
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.
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