By Carlos Correa, Nagesh Kumar
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Additional info for Protecting Foreign Investment: Implications of A WTO Regime and Policy Options
This tends to limit the diffusion of knowledge brought in by the MNE in the host country through vertical inter-ﬁrm linkages. The extent of these practices for MNEs from other home countries is not clear. 2. Training and employee mobility Some studies have documented the spillovers from FDI to local economies in the form of on-the-job training provided by MNE afﬁliates to their | personnel and through the mobility of trained personnel. Gerschenberg (1987) examined detailed career data for 72 top and middle-level managers in 41 manufacturing ﬁrms and concluded that MNE afﬁliates offer more training to their managers than local private ﬁrms, although the mobility seemed to be lower for managers employed by MNEs than for those in private local ﬁrms.
Over the 1970s, a number of initiatives were launched to provide a framework for the international regulation of international business. Some of these initiatives, however, could not be completed successfully because of a lack of consensus between developed and developing countries on their legal status. On the other hand, there were initiatives in the 1980s and later that tended to curtail the ability of national governments to regulate the operations of TNCs through multilateral trade negotiations.
Gerschenberg (1987) examined detailed career data for 72 top and middle-level managers in 41 manufacturing ﬁrms and concluded that MNE afﬁliates offer more training to their managers than local private ﬁrms, although the mobility seemed to be lower for managers employed by MNEs than for those in private local ﬁrms. Chen (1983) also reported signiﬁcantly higher training expenditures on the part of MNE afﬁliates in Hong Kong than for local ﬁrms in three of the four industries sampled. Tan and Batra (1995) found that although foreign ﬁrms were more likely to train their workers, once other factors were controlled the effect remained signiﬁcant only for Taiwan and Malaysia.
Protecting Foreign Investment: Implications of A WTO Regime and Policy Options by Carlos Correa, Nagesh Kumar