Does human capital endowment of FDI recipient countries really matter? Evidence from cross-country firm level data

Arbeitspapier

The stylized literature on foreign direct investment suggests that developing countries should invest in the human capital of their labour force in order to attract foreign direct investment. However, if educational quality in developing country is uncertain such that formal education is a noisy signal of human capital, it might be rational for multinational enterprises to focus more on job-specific training than on formal education of the labour force. Using cross-country data from the textiles and garments industry, we demonstrate that training indeed has greater impact on firm efficiency in developing countries than formal education of the work force.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 6382

Classification and Topics

• Classification: Wirtschaft ; Multinational Firms; International Business ; Education and Economic Development
• Subject: human capital ; training ; firm-level efficiency ; multinational enterprises ; Direktinvestition ; Multinationales Unternehmen ; Wirtschaftliche Effizienz ; Ausländisch ; Humankapital ; Betriebliche Ausbildung ; Bildungsabschluss ; Entwicklungsländer

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Bhaumik, Sumon K. ; Dimova, Ralitza
• Event: Veröffentlichung
• (who): Institute for the Study of Labor (IZA)
• (where): Bonn
• (when): 2012

Further information

• Handle: http://hdl.handle.net/10419/58822
• URN: urn:nbn:de:101:1-201206146574
• Last update: 10.03.2025, 11:43 AM CET