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 language | English |
|---|---|
| Pages (from-to) | 323-332 |
| Number of pages | 10 |
| Journal | Journal of International Trade and Economic Development |
| Volume | 17 |
| Issue number | 2 |
| DOIs | |
| Publication status | Published - 2008 |
UN SDGs
This output contributes to the following UN Sustainable Development Goals (SDGs)
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SDG 10 Reduced Inequalities
Keywords
- foreign direct investment
- training
- sophisticated technology
- absorptive capacity
- COUNTRIES
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