IDEAS home Printed from https://ideas.repec.org/a/taf/jitecd/v17y2008i2p323-332.html
   My bibliography  Save this article

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

Author

Listed:
  • Monojit Chatterji
  • Catia Montagna

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.

Suggested Citation

  • Monojit Chatterji & Catia Montagna, 2008. "A note on export-platform Foreign Direct Investment, training and absorptive capacity," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 17(2), pages 323-332.
    • Handle: RePEc:taf:jitecd:v:17:y:2008:i:2:p:323-332
    DOI: 10.1080/09638190701872954
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/09638190701872954
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/09638190701872954?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Hong Tan & Lopez-Acevedo, Gladys, 2003. "Mexico : in-firm training for the knowledge economy," Policy Research Working Paper Series 2957, The World Bank.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhang, Fang & Yang, Lianxing, 2020. "Financing constraints and ODI margins: Evidence from China," Economic Systems, Elsevier, vol. 44(1).
    2. Boothby, Daniel & Dufour, Anik & Tang, Jianmin, 2010. "Technology adoption, training and productivity performance," Research Policy, Elsevier, vol. 39(5), pages 650-661, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ali Souag & Ragui Assaad, 2018. "The impact of the action plan for promoting employment and combating unemployment on employment informality in Algeria," Middle East Development Journal, Taylor & Francis Journals, vol. 10(2), pages 272-298, July.
    2. Kathuria, Vinish & Seethamma Natarajan, Rajesh Raj & Sen, Kunal, 2010. "State business relations and manufacturing productivity growth in India," MPRA Paper 20314, University Library of Munich, Germany.
    3. Arias, Omar & Blom, Andreas & Bosch, Mariano & Cunningham, Wendy & Fiszbein, Ariel & Lopez Acevedo, Gladys & Maloney, William & Saavedra, Jaime & Sanchez-Paramo, Carolina & Santamaria, Mauricio & Siga, 2005. "Pending issues in protection, productivity growth, and poverty reduction," Policy Research Working Paper Series 3799, The World Bank.
    4. Almeida, Rita K. & Aterido, Reyes, 2010. "The Investment in Job Training: Why Are SMEs Lagging So Much Behind?," IZA Discussion Papers 4981, Institute of Labor Economics (IZA).
    5. Montes-Rojas, Gabriel & Santamaria, Mauricio, 2007. "Sources of productivity growth: Evidence from the Mexican manufacturing sector," The North American Journal of Economics and Finance, Elsevier, vol. 18(3), pages 263-278, December.
    6. Abdelhakim Hammoudi & Wadii Hatit & Lamia Rouached, 2013. "Foreign Direct Investment and Training in the Host Country: The Tariff-Jumping Argument Revisited," The International Trade Journal, Taylor & Francis Journals, vol. 27(1), pages 36-62, March.
    7. Rita Almeida & Reyes Aterido, 2015. "Investing in formal on-the-job training: are SMEs lagging much behind?," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-23, December.
    8. Tan, Hong & Savchenko, Yevgeniya & Gimpelson, Vladimir & Kapeliushnikov, Rostislav & Lukiyanova, Anna, 2007. "Skills Shortages and Training in Russian Enterprises," IZA Discussion Papers 2751, Institute of Labor Economics (IZA).
    9. Patrick Plane & Marie-Ange Véganzonès-Varoudakis, 2019. "Innovation, productivity, exports and the investment climate: A study based on Indian manufacturing firm-level data," Working Papers halshs-01990327, HAL.
    10. Shamsuzzoha & Makoto Tanaka, 2021. "The role of human capital on the performance of manufacturing firms in Bangladesh," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(1), pages 21-33, January.
    11. Zubovic, Jovan, 2010. "Razvoj privrede zasnovan na ulaganjima u ljudske resurse i stranim investicijama [Economic Growth Based on Investments in Human Resources and Foreign Investments]," MPRA Paper 64092, University Library of Munich, Germany.
    12. Monojit Chatterji & Catia Montagna, 2004. "Foreign Direct Investment, Training and Absorptive Capacity," Dundee Discussion Papers in Economics 176, Economic Studies, University of Dundee.
    13. Maliranta, Mika & Asplund, Rita, 2007. "Training and Hiring Strategies to Improve Firm Performance," Discussion Papers 1105, The Research Institute of the Finnish Economy.
    14. Vinish Kathuria & Rajesh Raj S.N. & Kunal Sen, 2013. "Institution of State–Business Relation and Its Impact on Manufacturing Productivity Growth in India: A Post-reform Analysis," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 14(1), pages 83-108, March.
    15. Blunch, Niels-Hugo & Castro, Paula, 2005. "Multinational enterprises and training revisited: do international standards matter?," Social Protection Discussion Papers and Notes 32546, The World Bank.
    16. Rita Almeida & Marta Faria, 2014. "The wage returns to on-the-job training: evidence from matched employer-employee data," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-33, December.
    17. Fernandes, Ana M., 2008. "Firm Productivity in Bangladesh Manufacturing Industries," World Development, Elsevier, vol. 36(10), pages 1725-1744, October.
    18. Michelle Riboud & Yevgeniya Savchenko & Hong Tan, 2007. "The Knowledge Economy and Education and Training in South Asia," World Bank Publications - Reports 19637, The World Bank Group.
    19. Caudillo Sanchez, Francisco, 2006. "Is information and communication technology (ICT) the right strategy for growth in Mexico?," Freiberg Working Papers 2006/17, TU Bergakademie Freiberg, Faculty of Economics and Business Administration.
    20. Almeida, Rita & Aterido, Reyes, 2008. "The incentives to invest in job training : do strict labor codes influence this decision?," Social Protection Discussion Papers and Notes 46189, The World Bank.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:jitecd:v:17:y:2008:i:2:p:323-332. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RJTE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.