Influence of Multinational Enterprises (MNEs) on the Human Capital Formation in the Republic of Macedonia
Economic Journal of the Institute of Economics in Republic of Macedonia, pp. 189-208, June 2008
18 Pages Posted: 29 Feb 2012 Last revised: 28 Aug 2013
Date Written: June 10, 2008
Abstract
The study on the influence of Multinational Enterprises on Human Capital Formation in R.Macedonia covers research on two important factors influencing country's economy and determining its future growth: 1) Direct spillovers - increase in the rate of employment of the host-country and technology and knowledge transfer from MNEs to its local subsidiaries; and 2) Indirect spillovers - technology and knowledge transfer through vertical and horizontal linkages, and other forms of support of the wider community.
The research methodology applied is qualitative research covering semi-structured interviews with managers of MNEs and local companies - part of MNEs horizontal and vertical linkages.The research findings confirm that MNEs have an influence on Human Capital formation in Republic of Macedonia, although this influence is very limited and covers technology and knowledge transfer on MNEs subsidiaries – direct spillovers. In the indirect spillovers, MNEs insignificantly influence the human capital development, because MNEs do not use many local companies as suppliers in the country. In the industries where MNEs use local suppliers and/or have local competition, they influence the local business community and transfer technology and knowledge through imposing higher standards of quality and after care activities.
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