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HUMAN CAPITAL FORMATION BY MNES AND TECHNOLOGY TRANSFERS
Written by: OECD Development CentreArticle Overview: 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.
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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
Questions Posed: HUMAN CAPITAL FORMATION AND FOREIGN DIRECT INVESTMENT IN DEVELOPING COUNTRIES
Preface: HUMAN CAPITAL FORMATION AND FOREIGN DIRECT INVESTMENT IN DEVELOPING COUNTRIES
THE VIRTUOUS CIRCLE OF HUMAN CAPITAL FORMATION, INWARD FDI, AND TECHNOLOGY TRANSFERS
CONCLUSION: HUMAN CAPITAL FORMATION AND FOREIGN DIRECT INVESTMENT IN DEVELOPING COUNTRIES
Do MNEs Train More than Domestic Firms?
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