Working Paper: NBER ID: w11451
Authors: Paul Beaudry; Patrick Francois
Abstract: Micro level studies in developing countries suggest managerial skills play a key role in the adoption of modern technologies. The human resources literature suggests that managerial skills are difficult to codify and learn formally, but instead tend to be learned on the job. In this paper we present a model of the interactive process between on-the-job managerial skill acquisition and the adoption of modern technology. The environment considered is one where all learning possibilities are internalized in the market, and where managers are complementary inputs to non-managerial workers. The paper illustrates why some countries may adopt modern technologies while others stay backwards. The paper also explains why managers may not want to migrate from rich countries to poor countries as would be needed to generate income convergence.
Keywords: No keywords provided
JEL Codes: O14; O33
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| On-the-job managerial skill acquisition (M53) | Adoption of modern technologies (O14) |
| Managerial skills are complementary to non-managerial roles (M54) | Enhanced overall productivity (O49) |
| Lack of managerial skills (M54) | Barrier to successful technology implementation in low-income countries (F35) |
| Differences in managerial skill levels (D29) | Substantial income disparities across countries (D31) |