A note on export-platform Foreign Direct Investment, training and absorptive capacity

Monojit Chatterji, Catia Montagna

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    2 Citations (Scopus)

    Abstract

    The empirical literature on FDI suggests that investment in training is the major source of human resource development activities undertaken by MNEs, particularly those with sophisticated technologies, and host countries' absorptive capacity plays an important role in attracting FDI. We develop a model of export-platform FDI that provides theoretical rationalisation of the role played by a host country's absorptive capacity in determining MNEs' location decisions as well as their level of investment and training-and, through this, the extent to which they contribute to human capital formation in the host country.

    Original languageEnglish
    Pages (from-to)323-332
    Number of pages10
    JournalJournal of International Trade & Economic Development
    Volume17
    Issue number2
    DOIs
    Publication statusPublished - 2008

    Keywords

    • foreign direct investment
    • training
    • sophisticated technology
    • absorptive capacity
    • COUNTRIES

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