Foreign Direct Investment and International Skill Inequality

This paper focuses on the effects of foreign direct investment (FDI) on skill inequality amongst countries. New growth models and international business studies predict that when countries liberalize their trade and investment regime in an environment of imperfect technology transfers, they will specialize in activities depending on the initial conditions such as skill endowments. There are important policy conclusions for national governments when FDI tends to raise international skill inequalities. In particular, developing countries with low-skill endowments that attract investors would do well to co-ordinate actively their human resources policies with investor needs in order to bring the country to a higher skill path.

Referencia APA
Velde, D., & Xenogiani, T. (2007, March). Foreign Direct Investment and International Skill Inequality. Oxford Development Studies, 35(1), 83-104. Retrieved October 17, 2008, doi:10.1080/13600810601167603