Studies and Analyses

Bogdanovska Gj., Andrijana

Publication: Економски развој (Economic development) [2/2008]

Recommended reference: Bogdanovska Gj, Andrijana, Influence of Multinational Enterprises in the Human Capital Formation in the Republic of Macedonia. Available at CEEOL: http://www.ceeol.com/aspx/publicationdetails.aspx?issueId=7df4ba0a-bccb-4337-b34e-c7c243d72d72

ABSTRACT

The study on the influence of Multinational Enterprises on Human Capital Formation in R.Macedonia consists of a research on two important factors influencing country's economy and determining its future growth. 

It builds on literature findings that indicate the importance of two types of activities through which MNEs contribute to the development of the Human Capital in the host economy. They are:

1. Direct spillovers - increase in the rate of employment of the host-country and technology and knowledge transfer from MNEs to its local subsidiaries;
2. Indirect spillovers - technology and knowledge transfer through vertical and horizontal linkages, and other forms of support of the wider community.

Research methodology applied is qualitative field 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 onto MNEs subsidiaries – direct spillovers. In the indirect spillovers, MNEs influence on human capital development is insignificant, 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, these companies influence the local business community and transfer technology and knowledge through imposing higher standards on quality and after care activities.