Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/58822
Authors: 
Bhaumik, Sumon K.
Dimova, Ralitza
Year of Publication: 
2012
Series/Report no.: 
Discussion Paper series, Forschungsinstitut zur Zukunft der Arbeit 6382
Abstract: 
The stylized literature on foreign direct investment suggests that developing countries should invest in the human capital of their labour force in order to attract foreign direct investment. However, if educational quality in developing country is uncertain such that formal education is a noisy signal of human capital, it might be rational for multinational enterprises to focus more on job-specific training than on formal education of the labour force. Using cross-country data from the textiles and garments industry, we demonstrate that training indeed has greater impact on firm efficiency in developing countries than formal education of the work force.
Subjects: 
human capital
training
firm-level efficiency
multinational enterprises
JEL: 
F23
I25
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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