About the product
TNCs, being on average more productive and technologyintensive than domestic firms, tend to bring positive contributions to the local economy, including in the form of skills development. TNC activity and skills upgrading have a complementary relationship, as they tend to reinforce each other (UNCTAD, 2002). While an enhanced skills base leads to a more attractive investment climate for TNCs, FDI can be exploited as a vehicle to promote human capital formation. However, the positive impact of FDI inflows on the local skills base is not automatic. This study examines the cases of Canada and Singapore to consider the types of policies that can be used to integrate FDI and skill development.