Federico Alberto Merchan Alvarez (Kiel Institute)
This paper presents a novel indirect methodology to measure international managerial skill, which has not been directly measured in the specialized management quality surveys. The proposed index aims to estimate the manager’s organizational capital contribution to improve production efficiency of exported products that compete in the international market by price, and to upgrade quality capacity of the exported products that compete by quality. Using a sample of the biggest Colombian exporting firms, the econometric analysis indicates that: i) international managerial skill index has a positive, significative and robust effect on total exported value via intensive margin, ii) a good manager is as important as positive exogeneous external conditions to boost exports, and iii) managers learn by exporting new goods to new country destinations.
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