Influence of multinational enterprises in the human capital formation in the Republic of Macedonia Cover Image

Влијанието на мултинационалните компании врз развивањето начовечкиот капитал во република Македонија
Influence of multinational enterprises in the human capital formation in the Republic of Macedonia

Author(s): Andrijana Bogdanovska Djurovic
Subject(s): Economy
Published by: Економски институт - Скопје
Keywords: Human capital formation inR.Macedonia; multinational enterprises; direct spillovers; indirect spillovers;

Summary/Abstract: The study on the influence of Muniltinational Enterprises on the Human Capital formation in the Republic of Macedonia consists of a research on two important factors influencing country’s economy and determining its future growth. The detailed literature findings in this area indicate that there are two ways at 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. These findings are followed by an extensive qualitative field research covering semi-structured interviews with managers of MNEs and local companies - part of MNEs horizontal and vertical linkages. The research results confirm that the MNEs influence the 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. MNEs actively participate in activities for improving human capital of the wider host community, although these activities tend to be promotion seeking in nature.

  • Issue Year: 10/2008
  • Issue No: 2
  • Page Range: 189-208
  • Page Count: 20
  • Language: Macedonian