How do multinational firms affect both the demand for and supply of skills in host country labour markets? On the demand side, inward FDI can stimulate demand for skilled workers in host countries through several channels. Most empirical evidence indicates that these channels work mainly within multinationals themselves, rather than through knowledge spillovers to domestic firms. On the supply side, the question of how inward FDI influences the development of human capital is much more difficult to answer. There are two different modes by which multinational enterprises (MNEs) can facilitate investments in human capital. One involves short-term, firm-level activities by which individual firms interact with host country labour markets. The other involves longterm, country-level activities by which MNEs collectively contribute to an overall macro environment where fiscal policy can support and drive education policy ...

Comment les firmes multinationales affectent-elles l’offre et la demande de compétences sur les marchés du travail des pays dans lesquelles elles s’installent ? Du côté de la demande, l’investissement direct étranger peut accroître la demande de maind’œuvre qualifiée dans les pays d’accueil, par plusieurs canaux. Il ressort de la plupart de données empiriques que ces canaux sont à l’œuvre à l’intérieur des firmes ellesmêmes, plutôt que par une diffusion des connaissances vers les entreprises nationales. Du côté de l’offre, il est beaucoup plus difficile de savoir comment l’IDE modifie le développement du capital humain. Les firmes multinationales peuvent faciliter de deux manières l’investissement dans le capital humain. La première se manifeste via les activités à court terme, au niveau de la firme, par lesquelles chaque entreprise interagit avec le marché du travail du pays d’accueil. L’autre se manifeste via les activités à long terme, au niveau du pays, par lesquelles ...

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Paper provided by OECD Development Centre in its series OECD Development Centre Working Papers with number 192.

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1. Ana Teresa Tavares & Aurora A.C. Teixeira, 2006. "Is Human Capital a Significant Determinant of Portugal’s FDI Attractiveness?," FEP Working Papers 211, Universidade do Porto, Faculdade de Economia do Porto. [Downloadable!]
2. Narula,Rajneesh & Marin,Anabel, 2003. "FDI spillovers, absorptive capacities and human capital development: evidence from Argentina," Research Memoranda 018, Maastricht : MERIT, Maastricht Economic Research Institute on Innovation and Technology. [Downloadable!]
3. Narula,Rajneesh, 2004. "Understanding absorptive capacities in an "innovation systems" context: consequences for economic and employment growth," Research Memoranda 004, Maastricht : MERIT, Maastricht Economic Research Institute on Innovation and Technology. [Downloadable!]
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   • Rejneesh Narula, 2004. "Understanding Absorptive Capacities in an "Innovation Systems" Context: Consequences for Economic and Employment Growth," DRUID Working Papers 04-02, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies. [Downloadable!]

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