This paper investigates the relationship between education and the location of multinational affiliates. It finds that U.S. multinationals seek production locations with high levels of education rather than with uneducated labor. Furthermore, the education effect can be separated from the...

We consider two channels via which foreign inputs into industrial production may lead to productivity effects. The first one concerns dynamic externalities between firms which share technical and organizational knowledge which is vital for the productivity growth of a particular industry. We...