EconPapers    
Economics at your fingertips  
 

Optimal foreign direct investment in the presence of human capital formation

Muhammad Asali () and Adolfo Cristobal-Campoamor ()

MPRA Paper from University Library of Munich, Germany

Abstract: This paper gives both theoretical arguments and econometric support to the notion of optimal FDI levels, from the viewpoint of human-capital formation in the host country. The optimality of a limited FDI level depends on the local incentives to get trained. Those incentives are formed in the face of uncertainty and asymmetric information between the multinational and its potential workers. Our estimates confirm the significance of a negative, non-linear impact of FDI per capita on tertiary schooling, both in developed and developing countries.

Keywords: FDI; Human-Capital Formation; Education; Skill Heterogeneity (search for similar items in EconPapers)
JEL-codes: F23 J24 (search for similar items in EconPapers)
Date: 2011-06-11
New Economics Papers: this item is included in nep-hrm and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/31460/1/MPRA_paper_31460.pdf original version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:31460

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().

 
Page updated 2020-07-08
Handle: RePEc:pra:mprapa:31460