Knowledge Spillovers, Absorptive Capacity, and Skill Intensity of Chilean Manufacturing Plants

19 Pages Posted: 8 Feb 2011

See all articles by Hisamitsu Saito

Hisamitsu Saito

Obihiro University of Agriculture & Veterinary Medicine

Munisamy Gopinath

Oregon State University - Department of Applied Economics

Date Written: February 7, 2011

Abstract

Knowledge spillovers are an important source of economic growth. In this study, we identify a mechanism through which knowledge spillovers occur among plants in the Chilean manufacturing industry. A plant-level production function is estimated with the absorptive-capacity hypothesis, that is, employment of skilled workers is a key channel through which knowledge is transmitted across plants. Results show that a plant's productivity from spillovers increases with its skill intensity, which is measured by the share of skilled workers in total employment. We also find that plants in a region with a large knowledge stock increase their skill intensity to benefit more from spillovers. Our results suggest that an increase in regional knowledge stock is the most effective policy to improve a plant's productivity. However, policies that encourage a plant to employ high skill-intensive production also enhance its productivity.

Suggested Citation

Saito, Hisamitsu and Gopinath, Munisamy, Knowledge Spillovers, Absorptive Capacity, and Skill Intensity of Chilean Manufacturing Plants (February 7, 2011). Journal of Regional Science, Vol. 51, No. 1, pp. 83-101, 2011, Available at SSRN: https://ssrn.com/abstract=1757640 or http://dx.doi.org/10.1111/j.1467-9787.2010.00677.x

Hisamitsu Saito (Contact Author)

Obihiro University of Agriculture & Veterinary Medicine ( email )

United States

Munisamy Gopinath

Oregon State University - Department of Applied Economics ( email )

213 Ballard Extension Hall
Corvallis, OR 97331-4501
United States
541-737-1402 (Phone)
541-737-2563 (Fax)

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