1. FOREIGN DIRECT INVESTMENT AND COUNTRY-SPECIFIC HUMAN CAPITAL.
- Author
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KIM, JINYOUNG and PARK, JUNGSOO
- Subjects
FOREIGN investments ,HUMAN capital ,GROSS domestic product ,ECONOMIC research ,LABOR supply ,LABOR ,MACROECONOMICS ,FOREIGN students ,ECONOMIC history ,ECONOMICS - Abstract
This paper exploits an international bilateral data set over the period 1963-1998 to investigate the relationship between foreign direct investment (FDI) and foreign-educated labor in an FDI host country. Workers educated abroad acquire country-specific human capital that is more productive in the host country of study. A foreign subsidiary sharing a parent firm's technology will invest more if it has more foreign-educated labor, since it can utilize this labor more productively because of the country-specific human capital. Consistent with our predictions, our empirical findings show that foreign-educated labor accounted for a sizable portion of growth in FDI flows. [ABSTRACT FROM AUTHOR]
- Published
- 2013
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