A Review of the Impact of FDI on Skill Acquisition

Yang FENG, Yang WANG

Abstract


Foreign direct investment (FDI) is an important force that promotes the economic growth and social development in developing countries, and it is also an important factor that affects skill acquisition of local residents. Based on the recent literature, this paper systematically summarizes the impact of FDI on individual educational attainment. The conclusion shows that whether FDI could promote individual’s skill acquisition, depends on the job opportunities and wages, as well as conceptual influence that FDI brings to the host country. This paper provides a reference for the long-term impact of FDI on the human capital accumulation, and indicates the available direction of related topic.


Keywords


FDI; Skill acquisition; Labor market; Concept

Full Text:

PDF

References


Anne, L. B., Helper, S. R., & Levine, D. L. (2011). The effect of industrialization on children’s education: The experience of Mexico. Review of Economics and Institutions, 2(2), 1-34.

Baldwin, R. E. (1994). The effects of trade and foreign investment on employment and relative wages. OECD Economics Studies, 23, 7-54.

Barro, R. J., & Lee, J. W. (2013). A new data set of educational attainment in the world, 1950-2010. Journal of Development Economics, 104, 184-198.

Becker, G. S. (1962). Investment in human capital: A theoretical analysis. Journal of Political Economy, 70(5), 9-49.

Becker, G. S. (1993). Nobel lecture: The economic way of looking at behavior. Journal of Political Economy, 101(3), 385-409.

Becker, S. O., Grosfeld, I., Grosjean, P., Voigtländer, N., & Zhuravskaya, E. (2020). Forced migration and human capital: Evidence from post-WWII population transfers. American Economic Review, 110(5), 1430-1463.

Blau, F. D., Kahn, L., & Papps, K.Ｌ. (2011). Gender, source country characteristics, and labor market assimilation among immigrants. Review of Economics and Statistics, 93(1), 43-58.

Blau, F. D., Kahn, Ｌ., Comey, Ｍ. Ｌ., Eng, Ａ.Ｒ., Meyerhofer, Ｐ.Ａ., & Willén, Ａ. (2020). Culture and gender allocation of tasks: Source country characteristics and the division of non-market work among US immigrants. NBER Working Paper, No.26931.

Brian, A., Harrison, A., & Lipsey, R. E. (1996). Wages and foreign ownership: A comparative study of Mexico, Venezuela, and the United States. Journal of International Economics, 40(3), 345-371.

Chetty, R., Hendren, N., Patrick Kline, Saez, E., & Turner, N. (2014a). Where Is the Land of Opportunity? The Geography of Intergenerational Mobility in the United States. Quarterly Journal of Economics, 129(4), 1553-1623.

Chetty, R., Hendren, N., Patrick Kline, Saez, E., & Turner, N. (2014b). Is the United States still a land of opportunity? Recent trends in intergenerational mobility. American Economic Review, 104(5), 141-147.

David, A. (2016). Endogenous skill acquisition and export manufacturing in Mexico. American Economic Review, 106(8), 2046-2085.

David, C., Dominisoru, C., & Taylor, L. (2018). The intergenerational transmission of human capital: Evidence from the golden age of upward mobility. NBER Working Paper, No.25000.

David, F., Giuliano, P., Özek, U., & Sapienza, P. (2019). Long-term orientation and educational performance. American Economic Journal: Economic Policy, 11(4), 272-309.

Davis, D. R., & Harrigan, J. (2011). Good jobs, bad jobs, and trade liberalization. Journal of International Economics, 84(1), 26-36.

Edmonds, E. V., Pavcnik, N., & Topalova, P. (2009) Child labor and schooling in a globalizing world: Some evidence from Urban India. Journal of the European Economic Association, 7(2-3), 498-507.

Edmonds, E. V., Pavcnik, N., & Topalova, P. (2010). Trade adjustment and human capital investments: Evidence from Indian Tariff reform. American Economic Journal: Applied Economics, 2(4), 42-75.

Elhanan, H., Itskhoki, O., & Redding, S. (2010). Inequality and unemployment in a global economy. Econometrica, 78(4), 1239-1283.

Feenstra, R. C., & Hanson, G. H. (1997). Foreign direct investment and relative wages: Evidence from Mexico’s maquiladoras. Journal of International Economics, 42(3-4), 371-393.

Glaeser, E. L., & Lu, M. (2018). Human-capital externalities in China. NBER Working Paper, No.24925.

Goldberg, P. K., & Pavcnik, N. (2007). Distributional effects of globalization in developing countries. Journal of Economic Literature, 45(1), 39-82.

Jensen, R. T., & Miller, N. H. (2017). Keepin’ ‘em Down on the Farm: Migration and Strategic Investment in Children’s Schooling. NBER Working Paper, No. 23122.

Johansson, A. C., & Liu, D. (2020). Foreign direct investment and inequality: Evidence from China’s policy change. World Economy, 43(6), 1647-1664.

Lee, Ｂ., ＆ Lardy, Ｎ. (2008). China’s embrace of globalization. China’s Economic Transition: Origins, Mechanisms, and Consequences (pp.633-682). Cambridge University Press.

Lei, X. Y., Shen, Y., Smith, J. P., & Zhou, G. S. (2017). Sibling gender composition’s effect on education: Evidence from China. Journal of Population Economics, 30(2), 569-550.

Leininger, J. (2007). Recent compensation and benefit trends in China. China Business Review, 34(4), 28-31.

Lipsey, R. E. (2004). Home and host country effects of FDI. In R. E. Baldwin and L. Alan Winters (Eds.), Challenges to globalization. University of Chicago Press.

Lipsey, R. E., & SjÖHolm, F. (2004). Foreign direct investment, education and wages in indonesian manufacturing. Journal of Development Economics, 73(1), 415-422.

Mocan, N. H., & Yu, H. (2019). Can superstition create a self-fulfilling prophecy? School outcomes of dragon children of China. NBER Working Paper, No.23709.

Paolo, F., & Görg, H. (2007). Does foreign direct investment affect wage inequality? An empirical investigation. World Economy, 34(9), 1455-1475.

Qian, Y. Y., & Roland, G. (1998). Federalism and the soft budget constraint. American Economic Review, 88(5), 1143-62.

Rong, S., Liu, K., Huang, S., & Zhang, Q. (2020). FDI, labor market flexibility and employment in China. China Economic Review, 61, 101449.

Tang, H. W., & Zhang, Y. F. (2017). Do multinationals transfer culture? Evidence on female employment in China. CESifo Working Paper Series, No.6295.

Wei, S. J. (1996). Foreign direct investment in China: Sources and consequences. University of Chicago Press. Financial Deregulation and Integration in East Asia, NBER-EASE, 5, 77-105.

Xu, C. G. (2011). The fundamental institutions of China’s reforms and development. Journal of Economic Literature, 49(4), 1076-1151.




DOI: http://dx.doi.org/10.3968/12053

Refbacks

  • There are currently no refbacks.


Copyright (c) 2021 Canadian Social Science

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

Reminder

  • How to do online submission to another Journal?
  • If you have already registered in Journal A, then how can you submit another article to Journal B? It takes two steps to make it happen:

Submission Guidelines for Canadian Social Science

We are currently accepting submissions via email only. The registration and online submission functions have been disabled.

Please send your manuscripts to [email protected]，or [email protected] for consideration. We look forward to receiving your work.

 Articles published in Canadian Social Science are licensed under Creative Commons Attribution 4.0 (CC-BY).

 

Canadian Social Science Editorial Office

Address: 1020 Bouvier Street, Suite 400, Quebec City, Quebec, G2K 0K9, Canada.
Telephone: 1-514-558 6138 
Website: Http://www.cscanada.net; Http://www.cscanada.org 
E-mail:[email protected]; [email protected]

Copyright © Canadian Academy of Oriental and Occidental Culture