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Article: Labor training and foreign direct investment
Title | Labor training and foreign direct investment |
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Authors | |
Keywords | Capital flow Economic development Foreign direct investment Investment Labor relations Skilled labor |
Issue Date | 2014 |
Publisher | Blackwell Publishing Ltd. The Journal's web site is located at http://www.blackwellpublishing.com/journal.asp?ref=0965-7576&site=1 |
Citation | Review of International Economics, 2014, v. 22 n. 1, p. 151–166 How to Cite? |
Abstract | Evidence shows that most foreign direct investment (FDI) flows from developed to developed countries (North-North) in skilled labor-intensive industries. This paper builds a model that incorporates labor training into the proximity-concentration tradeoffs to analyze the entry mode of multinationals to a foreign country. Production requires both skilled labor and unskilled labor. A multinational pursuing FDI needs to provide training to some workers in the host country to equip them with skills that are specific to the production of the firm. Labor training and skill specificity lead to contract friction. It is shown that in skilled labor-intensive industries, FDI increases along with the economic development level of the host country, whereas in unskilled labor-intensive industries, the reverse is true. This paper provides a theoretical explanation for the empirical findings on the prevalence of North-North FDI in skilled labor-industries and North-South FDI in unskilled labor-intensive industries. © 2014 John Wiley & Sons Ltd. |
Persistent Identifier | http://hdl.handle.net/10722/187608 |
ISSN | 2023 Impact Factor: 1.0 2023 SCImago Journal Rankings: 0.593 |
ISI Accession Number ID |
DC Field | Value | Language |
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dc.contributor.author | Liu, Q | en_US |
dc.contributor.author | Qiu, LD | en_US |
dc.date.accessioned | 2013-08-21T07:05:17Z | - |
dc.date.available | 2013-08-21T07:05:17Z | - |
dc.date.issued | 2014 | - |
dc.identifier.citation | Review of International Economics, 2014, v. 22 n. 1, p. 151–166 | en_US |
dc.identifier.issn | 0965-7576 | - |
dc.identifier.uri | http://hdl.handle.net/10722/187608 | - |
dc.description.abstract | Evidence shows that most foreign direct investment (FDI) flows from developed to developed countries (North-North) in skilled labor-intensive industries. This paper builds a model that incorporates labor training into the proximity-concentration tradeoffs to analyze the entry mode of multinationals to a foreign country. Production requires both skilled labor and unskilled labor. A multinational pursuing FDI needs to provide training to some workers in the host country to equip them with skills that are specific to the production of the firm. Labor training and skill specificity lead to contract friction. It is shown that in skilled labor-intensive industries, FDI increases along with the economic development level of the host country, whereas in unskilled labor-intensive industries, the reverse is true. This paper provides a theoretical explanation for the empirical findings on the prevalence of North-North FDI in skilled labor-industries and North-South FDI in unskilled labor-intensive industries. © 2014 John Wiley & Sons Ltd. | - |
dc.language | eng | en_US |
dc.publisher | Blackwell Publishing Ltd. The Journal's web site is located at http://www.blackwellpublishing.com/journal.asp?ref=0965-7576&site=1 | - |
dc.relation.ispartof | Review of International Economics | en_US |
dc.rights | The definitive version is available at www.blackwell-synergy.com | - |
dc.subject | Capital flow | - |
dc.subject | Economic development | - |
dc.subject | Foreign direct investment | - |
dc.subject | Investment | - |
dc.subject | Labor relations | - |
dc.subject | Skilled labor | - |
dc.title | Labor training and foreign direct investment | en_US |
dc.type | Article | en_US |
dc.identifier.email | Qiu, LD: larryqiu@hku.hk | en_US |
dc.identifier.authority | Qiu, LD=rp01093 | en_US |
dc.description.nature | link_to_OA_fulltext | - |
dc.identifier.doi | 10.1111/roie.12102 | - |
dc.identifier.scopus | eid_2-s2.0-84892466655 | - |
dc.identifier.hkuros | 216821 | en_US |
dc.identifier.volume | 22 | - |
dc.identifier.issue | 1 | - |
dc.identifier.spage | 151 | - |
dc.identifier.epage | 166 | - |
dc.identifier.isi | WOS:000329547000002 | - |
dc.publisher.place | United Kingdom | - |
dc.customcontrol.immutable | sml 140415 | - |
dc.identifier.issnl | 0965-7576 | - |