Project number: KKP144193

Some companies are more successful than others. These differences are even larger between countries: a typical German company operates more efficiently than a typical Hungarian one. One of the explanations for corporate success is good management. In better managed firms, targets and objectives are regularly measured and the incentives of workers and managers are tied to meeting these targets. This research examines to what extent good managers can contribute to economic performance at the national level. I build three quantifiable theories to study the market for managers and estimate these on data from Germany (1991-2021) and Hungary (1980-2021). I examine the growth in the number of managerial positions and managers after the economic liberalization of the 1990s; how foreign managers can help local economic performance; and the spread of trading practices across firms as managers move. My research shows that an efficient market for managers may help national economic development.