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The Productivity Impact of Business Mobility: International Evidence

Author

Listed:
  • Piva, Mariacristina
  • Tani, Massimiliano
  • Vivarelli, Marco

Abstract

The aim of this paper is to investigate the productivity impact of business visits, relative to traditional drivers of productivity enhancement, namely capital formation and R&D. To carry out the analysis, we combine unique and novel data on business visits sourced from the U.S. National Business Travel Association with OECD data on R&D and capital formation. The resulting unbalanced panel covers on average 16 sectors per year in 10 countries during the period 1998-2011 (2,262 observations). Our results suggest that mobility through business visits is an effective mechanism to improve productivity. The estimated effect is about half as large as investing in R&D, supporting viewing business visits as a form of long-term investment rather than pure consumption expenditure. In a nutshell, our outcomes support the need to recognize the private and social value of business mobility.

Suggested Citation

  • Piva, Mariacristina & Tani, Massimiliano & Vivarelli, Marco, 2017. "The Productivity Impact of Business Mobility: International Evidence," GLO Discussion Paper Series 14, Global Labor Organization (GLO).
  • Handle: RePEc:zbw:glodps:14
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    References listed on IDEAS

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    More about this item

    Keywords

    Business visits; labour mobility; knowledge; R&D; productivity;
    All these keywords.

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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