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MNCs in the Periphery: DaimlerChrysler South Africa (DCSA), Human Capital Upgrading and Regional Economic Development

In: Multinationals on the Periphery

Author

Listed:
  • Jochen Lorentzen

Abstract

When multinational firms shop the globe for possible investment locations, local capabilities are among the key variables influencing their decision. Everything else being equal, more highly developed human capital attracts more sophisticated foreign direct investment. But the relationship between human resources and capital flows is not confined to the situation pre-entry. Post-entry, foreign investors influence the demand for and the supply of skills. For example, they may approach a local training institution in order to obtain customized courses that produce graduates with a set of skills and competences the firms need, or influence the capabilities of their local suppliers along the value chain.

Suggested Citation

  • Jochen Lorentzen, 2007. "MNCs in the Periphery: DaimlerChrysler South Africa (DCSA), Human Capital Upgrading and Regional Economic Development," Palgrave Macmillan Books, in: Gabriel R. G. Benito & Rajneesh Narula (ed.), Multinationals on the Periphery, chapter 7, pages 158-187, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-59304-6_7
    DOI: 10.1057/9780230593046_7
    as

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