Human Capital and Inward FDI

Magnus Blomstrom and Ari Kokko

No 167, EIJS Working Paper Series from Stockholm School of Economics, The European Institute of Japanese Studies

Abstract: After a review of the literature, we conclude that there is potential for significant “spillover effects” from FDI into host countries. However, we identify some limitations of this potential to do with the stock of human capital, the interest in local firms of promoting skills transfer and the competition environment. We suggest comparing conditions and effects between regions, particularly between East Asia and Latin America, where transfer in the former has been more consistent than in the latter. We propose further that an analysis of the type of FDI flowing to different regions and countries could provide clues to the potential for maximising the gains to local skills accumulation. Finally, studies are needed which examine the nature of skills provided by FDI, and ways in which training institutions, business schools, for example, can complement in-service training by firms in FDI host countries.

Keywords: MNCs; FDI; Spillovers (search for similar items in EconPapers)
JEL-codes: J23 O12 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2003-01-01
New Economics Papers: this item is included in nep-dev, nep-ifn, nep-lab and nep-ltv
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (83)

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Working Paper: Human Capital and Inward FDI (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:eijswp:0167

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