OECD Development Centre Subscribe to OECD's articles (Visit OECD's Website) Created in 1962 by the Organisation for Economic Co-operation and Development (OECD) in Paris, the Development Centre is an interface between OECD Member countries and the emerging and developing economies. The Development Centre occupies a unique place within the OECD and in the international community. It is a forum where countries come to share their experience of economic and social development policies. The Centre contributes expert analysis to the development policy debate. The objective is to help decision makers find policy solutions to stimulate growth and improve living conditions in developing and emerging economies. OECD Development Centre is a Platinum author on EvanCarmichael.com

OECD Development Centre's Complete List Of African-Accounts Articles Name Email If you enjoyed this article, get OECD Development Centre's Complete List of African-Accounts Articles For FREE! More OECD Development Centre HUMAN RESOURCE DEVELOPMENT AND ATTRACTING INWARD FDI Lessons Learned VII CONCLUSION ECOMMERCE FOR DEVELOPMENT PROSPECTS AND POLICY ISSUES HUMAN CAPITAL FORMATION BY MNES AND TECHNOLOGY TRANSFERS VI NEW CHALLENGES FOR SOCIETIES AND DEVELOPMENT ASSISTANCE Vb The International Dimension of Internet Regulation Taxes and Domain Names BIBLIOGRAPHY HUMAN CAPITAL FORMATION AND FOREIGN DIRECT INVESTMENT IN DEVELOPING COUNTRIES Proper Regulation Is Crucial to Ensure Welfare Gains Prospects of Human Capital in the Future Background Abstract ECOMMERCE FOR DEVELOPMENT PROSPECTS AND POLICY ISSUES

Most empirical findings confirm this by using variables representing foreign
ownership. Tan and Batra (1996), Tan and Lopez-Acevedo (2003), and Miyamoto and
Todo (2003) show that higher foreign equity share is indeed an important determinant of
training in Mexico, Indonesia and Malaysia. Why do MNEs train more than domestic
firms? The literature provides numerous explanations. MNEs are less likely to face credit
constraints since they usually have wide access to foreign capital. It is also suggested
that MNEs are more likely to gain information on techniques and organisation of training
since their range of information is global. They can also reduce the probability of labour
turnovers by providing attractive compensation packages to keep the employees after
the training provision27. A recent analysis in Almeida (2003) indicates that foreign-owned
firms “cherry pick” domestic firms to be acquired, choosing those firms with a higher
educated workforce. If an educated workforce is more likely to be trained, or if “cherry
picked” firms tend to be high-technology firms that require training, MNEs are more likely
to train than domestic firms.

OECD DEVELOPMENT CENTRE
Working Paper No. 211
HUMAN CAPITAL FORMATION
AND FOREIGN DIRECT INVESTMENT
IN DEVELOPING COUNTRIES
by
Koji Miyamoto

Do MNEs Train More than Domestic Firms - To learn more about this author, visit OECD Development Centre's Website.

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