A note on export-platform Foreign Direct Investment, training and absorptive capacity

Monojit Chatterji, Catia Montagna

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

The empirical literature on FDI suggests that investment in training is the major source of human resource development activities undertaken by MNEs, particularly those with sophisticated technologies, and host countries' absorptive capacity plays an important role in attracting FDI. We develop a model of export-platform FDI that provides theoretical rationalisation of the role played by a host country's absorptive capacity in determining MNEs' location decisions as well as their level of investment and training-and, through this, the extent to which they contribute to human capital formation in the host country.

Original languageEnglish
Pages (from-to)323-332
Number of pages10
JournalJournal of International Trade & Economic Development
Volume17
Issue number2
DOIs
Publication statusPublished - 6 May 2008

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Absorptive capacity
Host country
Foreign direct investment
Multinational enterprises
Human capital formation
Human resource development
Location decision
Rationalization

Keywords

  • sophisticated technology
  • countries
  • absorptive capacity
  • foreign direct investment
  • training

Cite this

A note on export-platform Foreign Direct Investment, training and absorptive capacity. / Chatterji, Monojit; Montagna, Catia.

In: Journal of International Trade & Economic Development, Vol. 17, No. 2, 06.05.2008, p. 323-332.

Research output: Contribution to journalArticle

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