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

Monojit Chatterji and Catia Montagna

Journal of International Trade & Economic Development, 2008, vol. 17, issue 2, pages 323-332

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.

Keywords: foreign direct investment; training; sophisticated technology; absorptive capacity (search for similar items in EconPapers)
Date: 2008

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Persistent link: http://EconPapers.repec.org/RePEc:taf:jitecd:v:17:y:2008:i:2:p:323-332

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