FDI spillovers, absorptive capacities and human capital development

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FDI spillovers, absorptive capacities and human capital development

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dc.contributor.author Narula, Rajneesh en_US
dc.contributor.author Marin, Anabel en_US
dc.date.accessioned 2009-02-04T10:24:04Z
dc.date.available 2009-02-04T10:24:04Z
dc.date.issued 2004-01-23T00:00:00Z en_US
dc.identifier.uri http://hdl.handle.net/10398/6593
dc.description.abstract It is nowadays generally accepted that inward foreign direct investment (FDI) is crucial as a source of technological spillovers. One of the objectives of this paper is to review the evidence on the quantity and quality of human capital employed by domestic and foreign firms. We examine whether spillovers accrue from MNE activity, and provide a preliminary understanding of why MNE spillovers remain somewhat ambiguous, particularly in developing countries, paying particular attention to human capital development. Our analysis is supported by data from the Innovation Survey in Argentina. On the whole, MNE subsidiaries hired more professionals than domestic firms of the same size, possessed a more skilled labour force overall, and spent more on training than similar domestic firms. Subsidiaries in Argentina effectively have a higher labour productivity and pay higher wages. Yet, in terms of knowledge creation and utilisation, there was little to differentiate affiliates from domestic firms. While there is little evidence of widespread FDI spillovers, where spillovers did occur, it was where domestic firms demonstrated high investment in absorptive capacities. Our analysis also suggests that much of MNE activity - particularly after liberalisation - has been of the kind that by definition has limited opportunities for linkages and spillovers. These are activities in which MNEs may simply be able to generate economic rent from their superior knowledge of markets, and their ability to efficiently utilise their multinational network of affiliates. These assets are not generally easily spilled over to domestic firms. en_US
dc.format.extent 52 s. en_US
dc.language eng en_US
dc.relation.ispartofseries MERIT-Infonomics Research Memorandum series;2003-016 en_US
dc.subject.other direkte investeringer en_US
dc.subject.other argentina en_US
dc.subject.other teknologioverførsel en_US
dc.subject.other multinationale selskaber en_US
dc.subject.other menneskelig kapital en_US
dc.title FDI spillovers, absorptive capacities and human capital development en_US
dc.type wp en_US
dc.accessionstatus modt04jan23 inrumo en_US
dc.contributor.corporation Copenhagen Business School. CBS en_US
dc.contributor.department Institut for International Økonomi og Virksomhedsledelse en_US
dc.contributor.departmentshort INT en_US
dc.contributor.departmentuk Department of International Economics and Management en_US
dc.contributor.departmentukshort INT
dc.idnumber x645152071 en_US
dc.publisher.city København en_US
dc.publisher.year 2003 en_US
dc.title.subtitle evidence from Argentina en_US


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