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An Empirical Investigation on the Transfer of Expatriates Within MNCs from a Knowledge Perspective

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  • Carmen Astorne‐Figari
  • Joonhyung Lee

Abstract

We study the use of expatriates in transferring knowledge within a multinational corporation (MNC). We argue that MNCs use expatriates to allocate knowledge between headquarters and its foreign affiliates. With data from MNCs headquartered in South Korea, we trace unobservable knowledge using observable labour mobility. Our empirical analysis shows that the use of expatriates increases as communication between South Korea and the host country becomes more costly. However, the extent to which the use of expatriates relates with communication costs decreases in the sectoral complexity.

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  • Carmen Astorne‐Figari & Joonhyung Lee, 2019. "An Empirical Investigation on the Transfer of Expatriates Within MNCs from a Knowledge Perspective," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 81(4), pages 780-796, August.
    • Handle: RePEc:bla:obuest:v:81:y:2019:i:4:p:780-796
    DOI: 10.1111/obes.12254
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