Skills and Multinational Production

Andrea Lassmann and Christian Volpe Martincus

No 14111, IDB Publications (Working Papers) from Inter-American Development Bank

Abstract: This paper provides new evidence on the role of human capital in shaping economies participation in multinational production. In particular, we primarily examine whether and to what extent the level of English language mastery among countries inhabitants affects the presence of multinational firms in their territories. To do so, we combine data on multinational firms foreign subsidiaries worldwide and data on English proficiency of possible host countries populations. Our estimates suggest that countries whose populations have higher levels of English proficiency attract more multinational firms. The same holds for economies with higher shares of individuals with advanced digital skills.

Keywords: Multinational Firms; Foreign Language; Digital Skills (search for similar items in EconPapers)
JEL-codes: F23 J24 (search for similar items in EconPapers)
Date: 2025-05
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Persistent link: https://EconPapers.repec.org/RePEc:idb:brikps:14111

DOI: 10.18235/0013539

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