The Long-Term Effects of Foreign Investment on Local Human Capital: Four American Companies in Spain, 1920s–1970s

This article explores the long-term effects of foreign direct investment on the human capital development of host economies, based on the historical analysis of the Spanish operations of four leading American firms: ITT, J. Walter Thompson, Merck Sharp & Dohme, and John Deere. Our research shows...

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Bibliographic Details
Authors: Puig Raposo, Nuria, Álvaro Moya, Adoración
Format: article
Publication Date:2018
Country:España
Institution:Universidad Complutense de Madrid (UCM)
Repository:Docta Complutense
Language:English
OAI Identifier:oai:docta.ucm.es:20.500.14352/13211
Online Access:https://hdl.handle.net/20.500.14352/13211
Access Level:Open access
Keyword:339.7
Foreign direct investment
Spillovers
Human capital
American multinational enterprises
Spain
Economía internacional
Finanzas
Mercados bursátiles y financieros
5310 Economía Internacional
Description
Summary:This article explores the long-term effects of foreign direct investment on the human capital development of host economies, based on the historical analysis of the Spanish operations of four leading American firms: ITT, J. Walter Thompson, Merck Sharp & Dohme, and John Deere. Our research shows that the training and working practices of these companies had a positive impact on the Spanish subsidiaries in terms of technological upgrading and managerial development. However, the local context was also relevant, through mandatory agreements that empowered local partners from the start and the availability of locally educated professionals eager to absorb new knowledge.