Training and technology transfer
This paper analyses technology transfer from a multinational corporation (MNC) to a developing economy via training of local workers by the MNC. The paper analyses the determinants of the level of training by the MNC assuming a local entrant can subsequently hire MNC–trained workers and compete with the MNC. It is shown that a small training subsidy paid by the host government may cause the MNC to switch from entry–deterring behaviour to entry–accommodating behaviour. Such a subsidy will cause an increase in the number of skilled workers but may increase or decrease the domestic welfare of the developing country.
© Copyright Blackwell Publishing Ltd/University of Adelaide and Flinders University, 2003
Neil Campbell and Neil Vousden. "Training and technology transfer" Australian economic papers 42.1 (2003): 35-49.
This document is currently not available here.