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
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