This paper studies the puzzling lack of correlation between income and schooling in macro regressions. It is argued that the root of the puzzle is threefold. First, there is a problem of a proper definition of the way in which years of schooling should enter into a production function. Second,...

In recent years, academics and policy makers have emphasised the role of human capital formation in economic development. By creating human capital, countries become more attractive to private investment, both domestic and foreign. And through such investment, countries grow and prosper. Yet...

Latin American sovereign bonds represent a significant share of the emerging debt class (50 per cent by early 2001) and so have considerably shaped the dynamics of this market. Recent financial turmoil, contagion episodes and investors’ renewed concerns with debt default call for a better...

How do multinational firms affect both the demand for and supply of skills in host country labour markets? On the demand side, inward FDI can stimulate demand for skilled workers in host countries through several channels. Most empirical evidence indicates that these channels work mainly within...

This paper discusses policy options available to government policy makers in developing countries to attract foreign direct investment (FDI) and influence the behaviour of transnational corporations (TNCs), and it focuses on the effects these corporations have on human capital formation and...

This paper takes the case of Southeast Asia to examine the role played by multinational corporations (MNCs) in the transfer of knowledge and formation of human capital in FDI host nations. It explores the changing nature of FDI within the region and the diversity of environments in which FDI...