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Conference Paper: Labor training and foreign direct investment
Title | Labor training and foreign direct investment |
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Authors | |
Keywords | Labor training Contract frictions Export FDI Heterogenouse firms Skill intensity |
Issue Date | 2012 |
Publisher | European Trade Study Group. |
Citation | The 14th Annual Conference of the European Trade Study Group (ETSG 2012), Leuven, Belgium, 13-15 September 2012. How to Cite? |
Abstract | Evidence shows that most foreign direct investment (FDI) flows from developed to developed countries (North-to-North) in skilled-labor-intensive industries. This paper builds a model which incorporates labor training to the proximity-concentration tradeoffs to analyze multinationals’ entry mode to a foreign country. Production requires both skilled labor and unskilled labor. A multinational taking FDI needs to provide training to some workers in the host country to equip them with skills which are specific to the firm’s production. Labor training and skill specificity leads to contract friction. We show that in skilled-labor-intensive industries, FDI increases with the host country’s economic development level; but in unskilled-labor-intensive industries, the reverse is true. This paper provides a theoretical explanation to the empirical findings on the prevalence of North-to-North FDI in skilled-labor-industries and North-to-South FDI in unskilled-labor-intensive industries. |
Description | The Conference proceedings' website is located at http://www.etsg.org/ETSG2012/Programme/ETSG2012%20Preliminary%20Programme,%2029%20August%202012.htm |
Persistent Identifier | http://hdl.handle.net/10722/188026 |
DC Field | Value | Language |
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dc.contributor.author | Liu, Q | en_US |
dc.contributor.author | Qiu, LD | - |
dc.date.accessioned | 2013-08-21T07:25:48Z | - |
dc.date.available | 2013-08-21T07:25:48Z | - |
dc.date.issued | 2012 | - |
dc.identifier.citation | The 14th Annual Conference of the European Trade Study Group (ETSG 2012), Leuven, Belgium, 13-15 September 2012. | en_US |
dc.identifier.uri | http://hdl.handle.net/10722/188026 | - |
dc.description | The Conference proceedings' website is located at http://www.etsg.org/ETSG2012/Programme/ETSG2012%20Preliminary%20Programme,%2029%20August%202012.htm | - |
dc.description.abstract | Evidence shows that most foreign direct investment (FDI) flows from developed to developed countries (North-to-North) in skilled-labor-intensive industries. This paper builds a model which incorporates labor training to the proximity-concentration tradeoffs to analyze multinationals’ entry mode to a foreign country. Production requires both skilled labor and unskilled labor. A multinational taking FDI needs to provide training to some workers in the host country to equip them with skills which are specific to the firm’s production. Labor training and skill specificity leads to contract friction. We show that in skilled-labor-intensive industries, FDI increases with the host country’s economic development level; but in unskilled-labor-intensive industries, the reverse is true. This paper provides a theoretical explanation to the empirical findings on the prevalence of North-to-North FDI in skilled-labor-industries and North-to-South FDI in unskilled-labor-intensive industries. | - |
dc.language | eng | en_US |
dc.publisher | European Trade Study Group. | - |
dc.relation.ispartof | 14th ETSG 2012 Conference Proceedings | en_US |
dc.subject | Labor training | - |
dc.subject | Contract frictions | - |
dc.subject | Export | - |
dc.subject | FDI | - |
dc.subject | Heterogenouse firms | - |
dc.subject | Skill intensity | - |
dc.title | Labor training and foreign direct investment | en_US |
dc.type | Conference_Paper | en_US |
dc.identifier.email | Qiu, LD: larryqiu@hku.hk | en_US |
dc.identifier.authority | Qiu, LD=rp01093 | en_US |
dc.description.nature | postprint | - |
dc.identifier.hkuros | 216825 | en_US |