Multinationals on the periphery: DaimlerChrysler South Africa, human capital upgrading and regional economic development

Abstract

Utilising the DaimlerChrysler human resources upgrade in one of South Africa's least developed provinces as the basis, this is a well-developed case study of the relationship between human capital in host economies and international capital inflows. It describes how DaimlerChrysler upgraded human resources in its East London plant where the company manufactures the Mercedes C-Class model for export. Lorentzen explores the extent and depth of the upgrading along and beyond the automotive supply chain, and its repercussions on local education and training institutions. Finally, he analyses how foreign direct investment and local industrial development interact in the short and medium term, and hypothesises as to the possible longer-term outcomes in the absence of proper regional economic planning.