The Long-Term Effects of Management and Technology Transfers
American Economic Review
vol. 109,
no. 1, January 2019
(pp. 121-52)
(Complimentary)
Abstract
This paper examines the long-run causal effects of management on firm performance. Under the Productivity Program (1952–1958), the US organized management-training trips for Italian managers to U.S. firms and granted technologically advanced machines to Italian companies. I exploit an unexpected budget cut that reduced the number of participating firms and find that, compared to businesses excluded by the budget cut: performance of Italian firms that sent their managers to the US increased for at least fifteen years after the program; performance of companies that received new machines increased, but flattened out over time; management and new machines were complementary.Citation
Giorcelli, Michela. 2019. "The Long-Term Effects of Management and Technology Transfers." American Economic Review, 109 (1): 121-52. DOI: 10.1257/aer.20170619Additional Materials
JEL Classification
- F23 Multinational Firms; International Business
- L25 Firm Performance: Size, Diversification, and Scope
- M16 International Business Administration
- M54 Personnel Economics: Labor Management
- N34 Economic History: Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy: Europe: 1913-
- N64 Economic History: Manufacturing and Construction: Europe: 1913-
- O33 Technological Change: Choices and Consequences; Diffusion Processes