Dimitrios Exadaktylos, Massimo Riccaboni, Armando Rungi
arXiv 8 Jul 2020 · Econometrics · publishedInternational Economics (2019) · 2 citations (OpenAlex)
arXiv:2007.04055 · PDF · DOI · OpenAlex · Extracted main text
In this paper, we test the contribution of foreign management on firms' competitiveness. We use a novel dataset on the careers of 165,084 managers employed by 13,106 companies in the United Kingdom in the period 2009-2017. We find that domestic manufacturing firms become, on average, between 7% and 12% more productive after hiring the first foreign managers, whereas foreign-owned firms register no significant improvement. In particular, we test that previous industry-specific experience is the primary driver of productivity gains in domestic firms (15.6%), in a way that allows the latter to catch up with foreign-owned firms. Managers from the European Union are highly valuable, as they represent about half of the recruits in our data. Our identification strategy combines matching techniques, difference-in-difference, and pre-recruitment trends to challenge reverse causality. Results are robust to placebo tests and to different estimators of Total Factor Productivity. Eventually, we argue that upcoming limits to the mobility of foreign talents after the Brexit event can hamper the allocation of productive managerial resources.
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The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.
| Reference | Intensity | Mentions | Sections | Main text | |
|---|---|---|---|---|---|
| 1 | Ackerberg, D. A., Caves, K., Frazer, G (2015) Identification properties of recent production function estimators | 1.000 | 5 | 3 | 100% |
| 2 | Bircan, C (2019) Ownership structure and productivity of multinationals | 1.000 | 5 | 3 | 100% |
| 3 | Levinsohn, J., Petrin, A (2003) Estimating Production Functions Using Inputs to Control for Unobservables | 1.000 | 5 | 3 | 100% |
| 4 | Wooldridge, J. M (2009) On estimating firm-level production functions using proxy variables to control for unobservables | 1.000 | 5 | 3 | 100% |
| 5 | Arnold, J. M., Javorcik, B. S (2009) Gifted kids or pushy parents? foreign direct investment and plant productivity in indonesia | 0.928 | 4 | 3 | 100% |
| 6 | Dauth, W., Findeisen, S., Moretti, E., Suedekum, J., November (2018) Matching in cities | 0.928 | 4 | 3 | 100% |
| 7 | Orefice, G., Peri, G (2020) Immigration and worker-firm matching | 0.928 | 4 | 3 | 100% |
| 8 | Parsons, C., Vézina, P.-L (2018) Migrant networks and trade: The vietnamese boat people as a natural experiment | 0.843 | 3 | 3 | 100% |
| 9 | Gould, D (1994) Immigrant links to the home country: Empirical implications for u.s | 0.843 | 3 | 3 | 100% |
| 10 | Mion, G., Opromolla, L. D (2014) Managers' mobility, trade performance, and wages | 0.843 | 3 | 3 | 100% |
Showing the top 10 of 63 scored citations.