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Links between foreign direct investment and human capital formation: Evidence from the manufacturing sector in India

Gunja Baranwal

No wp-2016-123, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: This paper is related to the literature on the effect of foreign direct investment (FDI) on the labour market of host countries. Labour market literature has focused on the demand side of FDI; that is, increasing wage inequality by demanding more skilled workers or just increasing the overall average wages. On the supply side, FDI can enrich the skilled labour force of the host country by provision of on-the-job training or learning or through indirect technological spillover effects.

Keywords: Foreign Direct Investment; Human capital; Labour demand; Labour supply; Wages (search for similar items in EconPapers)
Date: 2016
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Journal Article: Links between foreign direct investment and human capital formation: Evidence from the manufacturing sector in India (2019) Downloads
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