Human Capital and Inward FDI
AbstractAfter a review of the literature, we conclude that there is potential for significant “spillover effects” from FDI into host countries. However, we identify some limitations of this potential to do with the stock of human capital, the interest in local firms of promoting skills transfer and the competition environment. We suggest comparing conditions and effects between regions, particularly between East Asia and Latin America, where transfer in the former has been more consistent than in the latter. We propose further that an analysis of the type of FDI flowing to different regions and countries could provide clues to the potential for maximising the gains to local skills accumulation. Finally, studies are needed which examine the nature of skills provided by FDI, and ways in which training institutions, business schools, for example, can complement in-service training by firms in FDI host countries.
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Bibliographic InfoPaper provided by The European Institute of Japanese Studies in its series EIJS Working Paper Series with number 167.
Length: 24 pages
Date of creation: 01 Jan 2003
Date of revision:
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Postal: The European Institute of Japanese Studies, Stockholm School of Economics, P.O. Box 6501, 113 83 Stockholm, Sweden
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MNCs; FDI; Spillovers;
Other versions of this item:
- J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
This paper has been announced in the following NEP Reports:
- NEP-ALL-2003-02-03 (All new papers)
- NEP-DEV-2003-02-03 (Development)
- NEP-IFN-2003-02-03 (International Finance)
- NEP-LAB-2003-02-03 (Labour Economics)
- NEP-LTV-2003-02-03 (Unemployment, Inequality & Poverty)
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