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Title: |
A Model of Spillovers through Labor
Recruitment |
| Author: |
Kaufmann,
Lawrence |
| Author
Affiliation: |
Christensen
Associates |
| Source: |
International Economic Journal, Autumn 1997, v. 11, no. 3, pp. 13-33 |
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Publication Date: |
Autumn 1997 |
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Abstract: |
This paper develops a model where
spillovers can be generated through domestic firm recruitment of
employees at a multinational corporation (MNC) where more advanced
technologies are employed. It is shown that both spillover and
no-spillover equilibria are possible in the model, depending on the
marginal costs and benefits of recruitment. Spillover benefits depend on
demand parameters and the technological capabilities of the domestic
firm, and spillover costs are determined by the MNC's internal wage.
Compared with the no-spillover equilibrium, spillovers lead to fewer
technology transfers by the MNC and higher market prices. |
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