Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/324810 
Year of Publication: 
2025
Series/Report no.: 
IDB Working Paper Series No. IDB-WP-01712
Publisher: 
Inter-American Development Bank (IDB), Washington, DC
Abstract: 
This paper provides new evidence on the role of human capital in shaping economies participation in multinational production. In particular, we primarily examine whether and to what extent the level of English language mastery among countries inhabitants affects the presence of multinational firms in their territories. To do so, we combine data on multinational firms foreign subsidiaries worldwide and data on English proficiency of possible host countries populations. Our estimates suggest that countries whose populations have higher levels of English proficiency attract more multinational firms. The same holds for economies with higher shares of individuals with advanced digital skills.
Subjects: 
Multinational Firms
Foreign Language
Digital Skills
JEL: 
F23
J24
Persistent Identifier of the first edition: 
Creative Commons License: 
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Document Type: 
Working Paper

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