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Business visits, knowledge diffusion and productivity
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We investigate whether labor mobility can be a distinct source of growth by
studying the productivity impact of business visits (BVs), vis-à-vis that of other well-known
drivers of productivity enhancement. Our analysis uses an unbalanced panel—covering on
average 16 sectors per year in ten countries during the period 1998–2011—which combines
unique and novel data on BVs sourced from the US National Business Travel Association
with Organization for Economic Cooperation and Development (OECD) data on R&D and
capital formation. We find that mobility through BVs is an effective mechanism to improve
productivity, being about half that obtained by investing in R&D. This relevant finding
invites viewing short-term mobility as a strategic mechanism and prospective policy tool to
overcome productivity slowdowns and foster economic growth.
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