@techreport{NBERw13073,
 title = "Foreign Know-How, Firm Control, and the Income of Developing Countries",
 author = "Ariel Burstein and Alexander Monge-Naranjo",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "13073",
 year = "2007",
 month = "May",
 URL = "http://www.nber.org/papers/w13073",
 abstract = {Managerial know-how shapes the productivity of firms by defining the set of available technologies, production choices, and market opportunities. This know-how can be reallocated across countries as managers acquire control of factors of production abroad. In this paper, we construct a quantitative model of cross-country income differences to study the aggregate consequences of international mobility of managerial know-how. We use the model and aggregate data to infer the relative scarcity of this form of know-how for a sample of developing countries. We also conduct policy counterfactuals and find that on average, developing countries gain up to 23% in output and 9% in consumption when they eliminate all barriers to foreign control of domestic factors of production.},
}