Does human capital endowment of FDI recipient countries really matter? Evidence from cross-country firm level data
AbstractThe stylized literature on foreign direct investment suggests that developing countries should invest in the human capital of their labour force in order to attract foreign direct investment. However, if educational quality in developing country is uncertain such that formal education is a noisy signal of human capital, it might be rational for multinational enterprises to focus more on job-specific training than on formal education of the labour force. Using cross-country data from the textiles and garments industry, we demonstrate that training indeed has greater impact on firm efficiency in developing countries than formal education of the work force.
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Bibliographic InfoPaper provided by William Davidson Institute at the University of Michigan in its series William Davidson Institute Working Papers Series with number wp1030.
Date of creation: 01 Feb 2012
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Human capital; Training; Firm-level efficiency; Multinational enterprises;
Other versions of this item:
- Bhaumik, Sumon K. & Dimova, Ralitza, 2012. "Does Human Capital Endowment of FDI Recipient Countries Really Matter? Evidence from Cross-Country Firm Level Data," IZA Discussion Papers 6382, Institute for the Study of Labor (IZA).
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-06-25 (All new papers)
- NEP-HRM-2012-06-25 (Human Capital & Human Resource Management)
- NEP-INT-2012-06-25 (International Trade)
- NEP-LAB-2012-06-25 (Labour Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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- Bhaumik, Sumon K. & Dimova, Ralitza, 2011. "Good and Bad Institutions: Is the Debate Over? Cross-Country Firm-Level Evidence from the Textile Industry," IZA Discussion Papers 5471, Institute for the Study of Labor (IZA).
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