The Human Capital Dimension to Foreign Direct Investment: Training, Adverse Selection and Firm Location

Theo Eicher () and Pantelis Kalaitzidakis

Discussion Papers in Economics at the University of Washington from Department of Economics at the University of Washington

Abstract: While the theoretical literature on Foreign Direct Investment (FDI) focuses largely on movements in capital and firm specific technology, recent empirical evidence emphasizes primarily the local human capital necessary to absorb FDI technology. We examine how human capital affects FDI and add a new dimension to the trade and FDI literature : informational asymmetries.

Keywords: FOREIGN INVESTMENT; HUMAN CAPITAL; FORMATION; CAPITAL MOVEMENTS; TECHNOLOGY (search for similar items in EconPapers)
JEL-codes: F21 J24 D82 O32 (search for similar items in EconPapers)
Date: Written 1997
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Working Paper: The Human Capital Dimension to Foreign Direct Investment: Training, Adverse Selection and Firm Location (1997)
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