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A note on export-platform Foreign Direct Investment, training and absorptive capacity

Author

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  • Monojit Chatterji
  • Catia Montagna

Abstract

The empirical literature on FDI suggests that investment in training is the major source of human resource development activities undertaken by MNEs, particularly those with sophisticated technologies, and host countries' absorptive capacity plays an important role in attracting FDI. We develop a model of export-platform FDI that provides theoretical rationalisation of the role played by a host country's absorptive capacity in determining MNEs' location decisions as well as their level of investment and training-and, through this, the extent to which they contribute to human capital formation in the host country.

Suggested Citation

  • Monojit Chatterji & Catia Montagna, 2008. "A note on export-platform Foreign Direct Investment, training and absorptive capacity," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 17(2), pages 323-332.
  • Handle: RePEc:taf:jitecd:v:17:y:2008:i:2:p:323-332
    DOI: 10.1080/09638190701872954
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    Cited by:

    1. Boothby, Daniel & Dufour, Anik & Tang, Jianmin, 2010. "Technology adoption, training and productivity performance," Research Policy, Elsevier, vol. 39(5), pages 650-661, June.

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