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
|
|
OECD Development Centre
(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's
Complete
List Of
African-Accounts
Articles
|
|
If you enjoyed this article, get OECD Development Centre's Complete List of African-Accounts Articles For FREE!
|
|
|
|