Foreign direct investment and human capital: The role of political and civil rights

Abstract

Domestic human capital is definitely a determinant of foreign direct investment (FDI) inflows for the developing world. Yet, the contribution of human capital will depend to a great extent on the institutional framework of a nation. Good political (civil) rights favor human capital to reap the benefits of FDI inflows more efficiently. Our paper show that the interlinkages between FDI, human capital and political (civil) rights play a very important role in explaining FDI inflows to developing countries. Using a panel of 76 developing countries, we show that human capital can have both linear and non-linear impact on FDI inflows. Unskilled human capital is always needed to attract FDI into a country and the linear positive association is enhanced by the presence of good political (civil) rights. Yet, skilled human capital may have both a concave and a convex association with FDI inflows, depending on the level of political (civil) rights of the country.

Links

PhilArchive



    Upload a copy of this work     Papers currently archived: 74,247

External links

Setup an account with your affiliations in order to access resources via your University's proxy server

Through your library

  • Only published works are available at libraries.

Analytics

Added to PP
2009-01-28

Downloads
14 (#724,932)

6 months
1 (#415,205)

Historical graph of downloads
How can I increase my downloads?

Citations of this work

No citations found.

Add more citations

References found in this work

No references found.

Add more references