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Article
Training and technology transfer
Australian Economic Papers (2003)
  • Neil Campbell
  • Neil Vousden
Abstract

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

Keywords
  • technology transfer,
  • multinational corporation,
  • training
Disciplines
Publication Date
March 1, 2003
Citation Information
Neil Campbell and Neil Vousden. "Training and technology transfer" Australian Economic Papers Vol. 42 Iss. 1 (2003)
Available at: http://works.bepress.com/neil_campbell/4/