FOSTERING HUMAN CAPITAL DEVELOPMENT IN THE WOOD SECTOR THROUGH FDI FOR SMALL OPEN ECONOMIES (THE CASE OF BULGARIA)

The main goal of this paper is to study the role of multinational enterprises for human capital development in the wood sector in Bulgaria. It employs a unique set of firm level data to conduct a comparative analysis of practices of domestic firms and foreign subsidiaries. The study finds evidences that MNEs significantly affect the enhancement of human capital. The inquiry reviles that foreign affiliates exhibit a higher level of commitment to training when compared to domestic firms, impart more advanced knowledge, emphasize CVT over OJT, engage in partnerships with subcontractors, and collaborate with local research institutions. There are also suggestions about the presence of positive spillover effects and a gradual reduction of differences between local and foreign firms.