The Long-Term Effects of Management and Technology Transfers

By Michela Giorcelli. The American Economic Review, 2019

179 citations recorded by the source corpus.

This paper examines the long-run causal effects of management on firm performance. Under the United States Technical Assistance and Productivity Program (1952–1958), the United States organized management training trips for Italian managers to US 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 United States 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. (JEL F23, L25, M16, M54, N34, N64, O33)

Subfields: Economics and Econometrics

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