Multinational Enterprises and Training Revisited: Do International Standards Matter?

Several studies have examined the determinants of training in developing countries but only few have paid attention to the potential importance of international standards such as ISO 9000 or ISO 14000 on the firm's training decision. This paper examines training determinants using recent employer surveys for four developing countries, Honduras, Indonesia, Morocco and Nicaragua. We find that ISO certification status is an important determinant of training, even after controlling for other characteristics such as workers' formal schooling, firm size, industry and foreign ownership. This points towards the importance of product quality and production standards for firm training. The paper also discusses policy implications related to the findings and provides directions for further research.