Objective
In this project, I study how economic development is shaped by cross-country knowledge flows via trade, foreign direct investment (FDI), and other channels. Using novel micro data for several Central and Eastern European (CEE) countries, I measure the quantitative importance of three channels: technical knowledge embodied in imported machinery, technical and organizational knowledge embodied in expatriate managers, and disembodied knowledge transfers taking place within multinational firms. I then analyze what impact foreign knowledge has on the firms and the workers of the host economy, and what are its implications for aggregate productivity and income inequality.
The project relies on several existing databases for Hungary and Romania, which will be complemented with newly purchased, collected and compiled data. The outcome of the project will be seven research studies and a collection of firm-level data sets covering CEE countries, including a large cross-country firm survey on the local supplier linkages of multinational companies.
My proposed project improves upon the state of the art in four ways. First, as a comprehensive study using novel micro data, it uncovers new facts about the relative importance of the channels of knowledge flows. Second, it improves the identification of causal effects relative to existing studies by exploiting the detailed micro data. Third, it uses the micro estimates to quantify the aggregate impact of foreign knowledge on the economy. Fourth, it discusses how foreign knowledge affects different firms and workers differently, and, more specifically, how it may contribute to income inequality.
More broadly, the research findings help evaluate the relative efficacy of trade, FDI, and immigration policies in promoting economic growth and can inform theories about the channels and barriers of productivity convergence.
Fields of science (EuroSciVoc)
CORDIS classifies projects with EuroSciVoc, a multilingual taxonomy of fields of science, through a semi-automatic process based on NLP techniques. See: The European Science Vocabulary.
CORDIS classifies projects with EuroSciVoc, a multilingual taxonomy of fields of science, through a semi-automatic process based on NLP techniques. See: The European Science Vocabulary.
- natural sciences computer and information sciences databases
- social sciences sociology social issues social inequalities
- social sciences economics and business economics production economics productivity
- social sciences sociology demography human migrations
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Programme(s)
Multi-annual funding programmes that define the EU’s priorities for research and innovation.
Multi-annual funding programmes that define the EU’s priorities for research and innovation.
Topic(s)
Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.
Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.
Call for proposal
Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.
Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.
ERC-2012-StG_20111124
See other projects for this call
Funding Scheme
Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.
Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.
Host institution
1051 Budapest
Hungary
The total costs incurred by this organisation to participate in the project, including direct and indirect costs. This amount is a subset of the overall project budget.