THE VIRTUOUS CIRCLE OF HUMAN CAPITAL FORMATION, INWARD FDI, AND TECHNOLOGY TRANSFERS

The past two sections described how host developing countries attract MNEs. It is found that while basic education for all adults is the key starting point, a demand driven HRD at a higher level is necessary to attract higher value-added MNEs including those in the recently growing services sector. To further squeeze-out the benefits of FDI, host countries need to further fine-tune policies to facilitate technology transfers. Even reaching this point is a difficult task for most host developing countries, especially for those countries that have historically relied on the primary sector and natural resourcebased manufacturing in which a high level of human resources deemed less important an attraction.

This section discusses possible policy options so that the process of inflowing FDI and technology transfers continuously repeats as in a virtuous circle, for countries that have at least gradually succeeded in attracting FDI and are moving towards optimising HRD policies to facilitate technology transfers. What else, apart from the policy implications mentioned in sections III and IV, is necessary to start and sustain such a virtuous circle?

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.

Like this article? Share it with your friends

E-Mail | Print | More

Related Articles
Questions Posed: HUMAN CAPITAL FORMATION AND FOREIGN DIRECT INVESTMENT IN DEVELOPING COUNTRIES
	The following lists key policy questions on HRD and FDI to be tackled throughout the paper. All the questions will be reviewed and assessed in the concluding chapter.
THE VIRTUOUS CIRCLE OF HUMAN CAPITAL FORMATION, INWARD FDI, AND TECHNOLOGY TRANSFERS
	The past two sections described how host developing countries attract MNEs. It is found that while basic education for all adults is the key starting point, a demand driven HRD at a higher level is necessary to at...
Introduction: HUMAN CAPITAL FORMATION AND FOREIGN DIRECT INVESTMENT IN DEVELOPING COUNTRIES
	Human resource development (HRD) and foreign direct investment (FDI) are among the key drivers of growth in developed and developing countries.
CONCLUSION: HUMAN CAPITAL FORMATION AND FOREIGN DIRECT INVESTMENT IN DEVELOPING COUNTRIES
	The literature on human capital formation and FDI provides tentative answers to the five questions posed in the introduction of this paper.
Preface: HUMAN CAPITAL FORMATION AND FOREIGN DIRECT INVESTMENT IN DEVELOPING COUNTRIES
	The main theme for the programme of work 2001-2002 at the Development Centre was Globalisation and Governance. Multinational enterprises (MNEs) are a key actor of globalisation and also raise numerous governance i...

---

Related Forum Posts