Training and Technology Transfer

Campbell, Neil A. and Vousden, Neil, "Training and Technology Transfer" . Australian Economic Papers, Vol. 42, pp. 35-49, 2003 Available at SSRN:

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.

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