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 The enhancing effect of human capital on the FDI and Economic Growth nexus
Please use this identifier to cite or link to this item http://hdl.handle.net/10773/6886

title: The enhancing effect of human capital on the FDI and Economic Growth nexus
authors: Varum, C. A.
Rocha, V.C.
Alves, G.
Piscitello, L.
keywords: Foreign Direct Investment
Economic Growth
Human Capital
Technological Capacity
Absorptive Capacity Thresholds
issue date: 2011
abstract: The importance of Human Capital accumulation in order to achieve greater economic growth is not neglected in economic theory. In this paper we look at the importance of human capital for enhancing the effect of another factor, inward foreign direct investment (FDI), that may affect growth. Governments in all continents now compete actively for FDI but not all countries reap the full benefits from it. Our study demonstrates that FDI has a greater impact on GDP growth for OECD countries that meet minimum thresholds of absorptive capacity measured by human capital proxy and private R&D. An active policy towards FDI implies therefore to support human capital development, learning and investment by local firms, as a way not only to attract high quality FDI but also to enhance the potential benefits arising from foreign presence.
URI: http://hdl.handle.net/10773/6886
publisher version/DOI: aquila.iseg.utl.pt/aquila/publico/units/events.do;jsessionid=8E9ECBCB643ADE4660666365C9E070DC.AQ2?method=viewEvent&unitID=102&announcementId=593505&contentContextPath_PATH=/instituicao/ISEG/pagina-inicial&_request_checksum_=1e5853840408fbfc16b573e2b12f22de0989cbde
source: First Lisbon Research Workshop on Economics and Econometrics of Education
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