Education Systems and Foreign Direct Investment

Education Systems and Foreign Direct Investment PDF Author: Elise Wendlassida Miningou
Publisher: International Monetary Fund
ISBN: 147559027X
Category : Business & Economics
Languages : en
Pages : 23

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Book Description
This paper examines the effect of the efficiency of the education system on Foreign Direct Investment (FDI). First, it focuses on the external efficiency and applies a frontier-based measure as a proxy of the ability of countries to optimally convert the average years of schooling into income for individuals. Second, it shows the relationship between the external efficiency of the education system and FDI inflows by applying GMM regression technique. The results show that the efficiency level varies across regions and countries and appears to be driven by higher education and secondary vocational education. Similarly to other studies in the literature, there is no significant relationship between the average years of schooling and FDI inflows. However, this study shows that the external efficiency of the education system is important for FDI inflows. Improving the external efficiency of the education system can play a role in attracting FDI especially in non-resource rich countries, nonlandloked countries and countries in the low and medium human development groups.

Education Systems and Foreign Direct Investment

Education Systems and Foreign Direct Investment PDF Author: Elise Wendlassida Miningou
Publisher: International Monetary Fund
ISBN: 147559027X
Category : Business & Economics
Languages : en
Pages : 23

Get Book Here

Book Description
This paper examines the effect of the efficiency of the education system on Foreign Direct Investment (FDI). First, it focuses on the external efficiency and applies a frontier-based measure as a proxy of the ability of countries to optimally convert the average years of schooling into income for individuals. Second, it shows the relationship between the external efficiency of the education system and FDI inflows by applying GMM regression technique. The results show that the efficiency level varies across regions and countries and appears to be driven by higher education and secondary vocational education. Similarly to other studies in the literature, there is no significant relationship between the average years of schooling and FDI inflows. However, this study shows that the external efficiency of the education system is important for FDI inflows. Improving the external efficiency of the education system can play a role in attracting FDI especially in non-resource rich countries, nonlandloked countries and countries in the low and medium human development groups.

Best Practices in Investment for Development

Best Practices in Investment for Development PDF Author:
Publisher:
ISBN:
Category : Business & Economics
Languages : en
Pages : 94

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Book Description
Improving the national skill set is an important policy objective for both developed and developing countries. The level of skills in the local population-- a nation's human capital-- is a key determinant of economic development and growth. At the same time, globalization has made human capital and skills development even more important. The reduction in trade barriers and the surge in international trade and foreign direct investment (FDI) by transnational corporations (TNCs) have resulted in the need for workers and businesses to be competitive on a global scale. This publication discusses how government policies are instrumental in initiating and fostering the upward sloping FDI and skills circle.

Third-Level Education, Foreign Direct Investment And Economic Boom in Ireland

Third-Level Education, Foreign Direct Investment And Economic Boom in Ireland PDF Author: Frank Barry
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

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Book Description
Ireland's dramatic economic boom of the 1990s has been referred to as "the era of the Celtic Tiger". In a little over a decade, real national income per head jumped from 65 percent of the Western European average to above parity, unemployment tumbled from double to less than half the European Union average and numbers at work increased by over 50 percent. Much research has been carried out on the impact of each of the separate elements agreed to have been important in stimulating or sustaining the boom. The present paper focuses on one key under-researched synergy - the nexus between the country's industrial strategy, which focused on attracting foreign direct investment in certain high-tech sectors, and the orientation of the third-level educational system that had been developed in Ireland over recent decades.

The Relationship Between Foreign Direct Investment and Tertiary Education in Developing Countries

The Relationship Between Foreign Direct Investment and Tertiary Education in Developing Countries PDF Author: Poonam Ravindranath
Publisher:
ISBN:
Category : Economics
Languages : en
Pages : 98

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Book Description
Foreign Direct Investment (FDI) is widely believed to play a key role in economic development. Existing research suggests that FDI may be positively related to technology transfer, industrial productivity, and overall economic growth. As such, substantial amounts of FDI have flowed into developing countries in recent decades. In this study, I hypothesize that inward FDI contributes to the demand for skilled labor in host countries, which may in turn increase investments in human capital. Specifically, I study the relationship between inward FDI and tertiary education enrollment in developing countries for the period between 2001 to 2015. Although not generally statistically significant, I find some evidence of a positive relationship between FDI inflows and tertiary education enrollment in developing countries. Additionally, I find statistically significant differences in the relationship between FDI inflows and tertiary education enrollment between low-income and middle-income countries. While FDI is negatively related to tertiary education enrollment in low-income countries, this relationship is positive in middle-income countries.

Foreign Direct Investment for Development Maximising benefits, minimising costs

Foreign Direct Investment for Development Maximising benefits, minimising costs PDF Author: OECD
Publisher: OECD Publishing
ISBN: 9264199284
Category :
Languages : en
Pages : 225

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Book Description
Provides a comprehensive review of the issues related to the impact of FDI on development as well as to the policies needed to maximise the benefits.

Higher Education and Foreign Direct Investment

Higher Education and Foreign Direct Investment PDF Author: Yuyinska Krystal Sanchez-Osio
Publisher:
ISBN:
Category : Barriers to entry (Industrial organization)
Languages : en
Pages :

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Book Description


The Effect of Human Capital on FDI Inflows: Evidence Form Internationally Standardized Testing

The Effect of Human Capital on FDI Inflows: Evidence Form Internationally Standardized Testing PDF Author: Ikeoluwapo Oyenuga
Publisher:
ISBN:
Category : Political planning
Languages : en
Pages : 82

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Book Description
Few empirical studies have been conducted to support the argument that countries with stronger human capital attract more foreign direct investment. Where available, these studies use quantitative measures of education attainment that do not account for varying quality of education systems across countries. Using four years of test score data from the Programme for International Student Assessment conducted in a sample of middle-to-high income countries, this paper tests the hypothesis that the quality of human capital affects the amount of foreign direct investment a country attracts. The empirical results show a statistically significant negative correlation between test scores and inward foreign direct investment, suggesting that countries that perform better on the test receive less foreign direct investment, on average.

The Effect of FDI on Local Education Expenditures

The Effect of FDI on Local Education Expenditures PDF Author: Hong Zhuang
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

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Book Description
The intense competition for foreign direct investment (FDI) by state and local governments within the United States has raised concerns among some that this leads to the underprovision of public services and possibly welfare losses for local communities. Economic analysis of this hypothesis yields mixed results. This paper investigates the impact of FDI on local education expenditures both theoretically and empirically. The theoretical model shows an ambiguous impact of FDI on local expenditures for education. Empirically using US state-level data from 1991 to 2000 and the system-GMM estimator that controls for fixed effects, times series issues and endogeneity, I find evidence that FDI is positively correlated with increased expenditures on education.

Foreign Direct Investment, Financial Development and Economic Growth

Foreign Direct Investment, Financial Development and Economic Growth PDF Author: Niels Hermes
Publisher:
ISBN:
Category :
Languages : en
Pages : 32

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Book Description


Foreign Direct Investment and Development

Foreign Direct Investment and Development PDF Author: Theodore Moran
Publisher: Columbia University Press
ISBN: 0881326240
Category : Business & Economics
Languages : en
Pages : 183

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Book Description
This volume is the culmination of Institute investigations on the relationship between foreign direct investment (FDI) and development. Today, more than one-third of world trade takes place in the form of intrafirm transactions—that is, trade among the various parts of the same corporate network spread across borders—and the bulk of technology is transferred within the confines of integrated international production systems. This means that FDI and the operations of multinational corporations have become central to the world economy at large. Nowhere is this more important than for developing countries. But as Theodore Moran argues in this new volume, FDI is not a single phenomenon. FDI has such different impacts in the extractive sector, infrastructure, manufacturing and assembly, and services—and presents such distinctive policy challenges—that each broad category of FDI must be treated on its own terms. Indeed, past studies that have aggregated all FDI flows together to try to find some unique relationship to host-country growth or welfare have led to unreliable substantive findings and, sometimes, mistaken policy conclusions. Moran examines each of the principal forms of FDI, extracts the best from previous analysis, and offers new findings and perspectives about how benefits from FDI in each sector can be enhanced and potential damages limited or eliminated.