Multinationals and the training of workers in developing countries

Abstract EN

We analyse the .،،direct investment v.

export,,.

decision of a multinational.

firm competition with a potential entrant in a host country.

We consider a workers, skills asymetry between the host and the multinational home countries.

We give to the multinational the possibility to train the hired workers when investing.

We show that an improvement in the workers.skills in the host country does not increase systematically the multinational incentive to invest.

We also demonstrate that under the multinational.s training assumption, the tariff-jumping investment can always be welfare improving even if it excludes the local .firm from the market.