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HUMAN CAPITAL FORMATION BY MNES AND TECHNOLOGY TRANSFERS

 
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HUMAN CAPITAL FORMATION BY MNES AND TECHNOLOGY TRANSFERS
   

The previous section examined the role of host countries in attracting inward FDI and found that efforts to develop an attractive investment climate supported by sound policy reforms in HRD would help open doors to inward FDI. This section focuses on what host countries can do next to mobilise these MNEs to strengthen HRD further.

The obvious place to start is the role of enterprise training by the MNEs, since they are one of the limited channels of foreign technology coming into the host developing country24. MNEs cannot only afford to provide more training but should also provide innovative training in areas such as information and technology, organisational skills, and management, to which otherwise host developing countries have limited access. However, it is not just the host country effort that is crucial for maximising the role of HRD by the FDI. It is in fact also important to have domestic firms, which constitute the majority of firms and workers in developing countries, conduct HRD in order to maximise the amount of skills transferred to the host country. Thus, this section will consider training activities of both MNEs and domestic firms.

OECD DEVELOPMENT CENTRE Working Paper No. 211 HUMAN CAPITAL FORMATION AND FOREIGN DIRECT INVESTMENT IN DEVELOPING COUNTRIES by Koji Miyamoto To learn more about this author, visit OECD Development Centre's Website.

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OECD Development Centre
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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.
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