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Human Capital Formation and Foreign Direct Investment in Developing Countries

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  • Koji Miyamoto

Abstract

This paper synthesises the existing literature on human capital formation and foreign direct investment (FDI) in developing countries. The aim is to take a bird’s eye view of the complex linkages between the activities of multinational enterprises (MNEs) and policies of host developing countries. In doing so, general trends, best practices and policy experiences are extracted to evaluate the current state of knowledge. The literature indicates that a high level of human capital is no doubt one of the key ingredients for attracting FDI, as well as for host countries to gain maximum benefits from their activities. Most developing countries, however, underinvest in human capital, and the investment that is actually taking place is unevenly distributed across countries and regions that have adopted different human resource development (HRD) policies. To improve human capital formation and thus to attract more FDI would therefore require a more coherent approach that takes host country ... Ce Document technique propose une synthèse des travaux existants sur la formation du capital humain et l’investissement direct étranger (IDE) dans les pays en développement. Il vise à examiner de près les relations complexes qui s’établissent entre les activités des multinationales et les politiques des PED d’accueil. Cette synthèse permet d’identifier les tendances générales, les meilleures pratiques ainsi que les expériences politiques afin d’évaluer l’état actuel des connaissances. Il en ressort que le niveau élevé du capital humain est de toute évidence l’un des principaux facteurs permettant d’attirer les IDE et — pour le pays d’accueil — de tirer le plus grand profit de leurs activités. Mais la plupart des pays en développement n’investissent pas suffisamment dans le capital humain, et l’investissement actuel est inégalement réparti entre les pays et les régions, dont les politiques de développement des ressources humaines (DRH) sont différentes. Pour améliorer la formation ...

Suggested Citation

  • Koji Miyamoto, 2003. "Human Capital Formation and Foreign Direct Investment in Developing Countries," OECD Development Centre Working Papers 211, OECD Publishing.
  • Handle: RePEc:oec:devaaa:211-en
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    File URL: http://dx.doi.org/10.1787/646400335388
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    Cited by:

    1. Vasile Alecsandru STRAT, 2015. "The relationship between the education system and the inflows of FDI for the Central and East European EU new member states," Romanian Journal of Economics, Institute of National Economy, vol. 41(2(50)), pages 76-92, december.
    2. Groh, Alexander Peter & Wich, Matthias, 2012. "Emerging economies' attraction of foreign direct investment," Emerging Markets Review, Elsevier, vol. 13(2), pages 210-229.
    3. Abdelaal Mahmoud, Ashraf, 2010. "FDI, local Financial Markets, Employment and poverty alleviation," MPRA Paper 29717, University Library of Munich, Germany.
    4. Daniele Checchi & Gianfranco De Simone & Riccardo Faini, 2007. "Skilled Migration, FDI and Human Capital Investment," Development Working Papers 235, Centro Studi Luca d'Agliano, University of Milano.
    5. repec:eee:ecmode:v:69:y:2018:i:c:p:134-149 is not listed on IDEAS
    6. Sucharita Ghosh & Camilla Mastromarco, 2013. "Cross-border Economic Activities, Human Capital and Efficiency: A Stochastic Frontier Analysis for OECD Countries," The World Economy, Wiley Blackwell, vol. 36(6), pages 761-785, June.
    7. Ana Teresa Tavares & Aurora A. C. Teixeira, 2005. "Human Capital Intensity in Technology-Based Firms Located in Portugal: Do Foreign Multinationals Make a Difference?," FEP Working Papers 187, Universidade do Porto, Faculdade de Economia do Porto.
    8. Zubovic, Jovan, 2010. "Razvoj privrede zasnovan na ulaganjima u ljudske resurse i stranim investicijama
      [Economic Growth Based on Investments in Human Resources and Foreign Investments]
      ," MPRA Paper 64092, University Library of Munich, Germany.
    9. Marcella Alsan & David E. Bloom & David Canning, 2004. "The Effect of Population Health on Foreign Direct Investment," NBER Working Papers 10596, National Bureau of Economic Research, Inc.
    10. Alsan, Marcella & Bloom, David E. & Canning, David, 2006. "The effect of population health on foreign direct investment inflows to low- and middle-income countries," World Development, Elsevier, vol. 34(4), pages 613-630, April.
    11. repec:kap:iaecre:v:15:y:2009:i:3:p:310-321 is not listed on IDEAS
    12. Dirk Holtbrügge & Carina B. Friedmann, 2016. "Does location choice affect foreign subsidiary success in India? An empirical study based on Porter's diamond model," International Journal of Business and Emerging Markets, Inderscience Enterprises Ltd, vol. 8(1), pages 3-29.

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