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.

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.

Education Systems and Foreign Direct Investment

Education Systems and Foreign Direct Investment PDF Author: Elise Wendlassida Miningou
Publisher: International Monetary Fund
ISBN: 1475590237
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.

Some New Evidence on Determinants of Foreign Direct Investment in Developing Countries

Some New Evidence on Determinants of Foreign Direct Investment in Developing Countries PDF Author: Harinder Singh
Publisher: World Bank Publications
ISBN:
Category : Direkte investeringer
Languages : en
Pages : 48

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Book Description


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.

Foreign Direct Investment and Human Development

Foreign Direct Investment and Human Development PDF Author: Irina Orbes Cervantes
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

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Book Description
In this thesis, I examine the relationship between foreign direct investment (FDI) in a host country and human development. Human development comprises the education, health, and income opportunities available to people in a particular country. I assert that FDI can potentially enhance human development through economic growth and higher income in a host country. However, alongside these benefits, FDI can also have negative effects by worsening a host country's income inequality. Given FDI's counteracting positive and negative effects on human development, I propose that FDI's net effect on human development takes the form of an inverted U-shaped relationship. I further predict that a host country's institutional maturity, defined as the degree of institutional development within a country, plays an important role in understanding which national contexts strengthen or weaken this relationship. I contend that the inverted U-shaped relationship between FDI and human development is moderated by a host country's institutions, and assess this moderation with respect to two dimensions: business sophistication and transparency. Business sophistication measures the extent to which a country possesses supplier networks, technology production, and advanced business practices (World Economic Forum, 2015). My results show that countries with low business sophistication have a pronounced inverted U-shaped relationship between FDI and human development, while countries with high business sophistication experience an attenuated effect (flattened inverted U-shaped). Similarly, transparency measures public-sector employees and executives' accountability and performance, as well as civil society's access to information about public affairs (World Bank, 2016). My results show that economies with low transparency have a steeper inverted U-shaped relationship between FDI and human development; by contrast, economies with high transparency exhibit a flatter inverted U-shaped curve. My study makes three core contributions to the field. First, it adds to development economics scholars' analysis of human development by proposing that income inequality is a key FDI cost. Therefore, while FDI can indeed enhance human development (as past studies have shown), it can also have a negative effect by worsening a host country's income inequality. Second, my study facilitates better knowledge of the relationship between FDI and human development by integrating the positive and negative effects of this relationship. Third, in line with studies that propose the contingent effects of FDI (Meyer & Sinani, 2009), my study contributes to understanding how a host country's institutional maturity in the private and public sectors affects the strength of FDI's curvilinear effect on human development.

Does Foreign Direct Investment Promote Development?

Does Foreign Direct Investment Promote Development? PDF Author: Theodore Moran
Publisher: Columbia University Press
ISBN: 0881324639
Category : Business & Economics
Languages : en
Pages : 427

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Book Description
What is the impact of foreign direct investment (FDI) on development? The answer is important for the lives of millions—if not billions—of workers, families, and communities in the developing world. The answer is crucial for policymakers in developing and developed countries, and in multilateral agencies. This volume gathers together the cutting edge of new research on FDI and host country economic performance and presents the most sophisticated critiques of current and past inquiries. It probes the limits of what can be determined from available evidence and from innovative investigative techniques. In addition, the book presents new results, concludes with an analysis of the implications for contemporary policy debates, and proposes new avenues for future research.

How Does Foreign Direct Investment Affect Economic Growth

How Does Foreign Direct Investment Affect Economic Growth PDF Author: Mr.Eduardo Borensztein
Publisher: International Monetary Fund
ISBN: 1451853270
Category : Business & Economics
Languages : en
Pages : 26

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Book Description
We test the effect of foreign direct investment (FDI) on economic growth in a cross-country regression framework, utilizing data on FDI flows from industrial countries to 69 developing countries over the last two decades. Our results suggest that FDI is an important vehicle for the transfer of technology, contributing relatively more to growth than domestic investment. However, the higher productivity of FDI holds only when the host country has a minimum threshold stock of human capital. In addition, FDI has the effect of increasing total investment in the economy more than one for one, which suggests the predominance of complementarity effects with domestic firms.

Foreign Direct Investment in Developing Countries - Policy Considerations for sustainable Growth

Foreign Direct Investment in Developing Countries - Policy Considerations for sustainable Growth PDF Author: Yasmin Shoaib
Publisher: GRIN Verlag
ISBN: 3638562867
Category : Political Science
Languages : en
Pages : 26

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Book Description
Seminar paper from the year 2006 in the subject Business economics - Economic Policy, grade: 1,3, Berlin School of Economics, course: Development Economics, language: English, abstract: Developing countries today have to deal with the question of how to increase economic growth. This phenomenon depends on a variety of factors: political, economic and social ones. Due to globalisation, foreign direct investment (FDI) has become an often discussed issue in literature and is seen as a key factor for economic growth by many developing countries by now. But the effects of FDI are not necessarily positive. In this written assignment, the author would like to introduce policies to be conducted in order to maximise the positive effects and to minimise the negative ones. This paper will start with a definition of the terms developing country and foreign direct investment. In the second part, a short introduction in the controversial theories about the impact on economies of developing countries will be presented. In the following, several national and international policy considerations will be introduced. The paper will end with a conclusion.

Foreign Direct Investment, Location and Competitiveness

Foreign Direct Investment, Location and Competitiveness PDF Author: European International Business Academy. Conference
Publisher: Elsevier
ISBN: 0762314753
Category : Business & Economics
Languages : en
Pages : 305

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Book Description
This volume addresses some of the critical issues now demanding the attention of International Business teachers and researchers. From several angles, the contributions analyze factors which may explain, and/or influence the relationship between the competitiveness of multinational enterprises (MNEs) and the countries in which they operate. More particularly, the four main issues address: the recent advances in the determinants and strategy of multinational business activity; the determinants of location competitiveness of countries; the competitiveness of emergent and developing countries and the locational responses of both indigenous and foreign-owned firms; and the policy challenges raised by the highly fragmented, and often uncoordinated international regulatory framework on government FDI. It is hoped the contents of the volume will be of interest to international business scholars, senior executives of multinational enterprises and national policy makers interested in advancing their competitiveness by engaging in outward, and encouraging inward foreign direct investment. This book addresses some of the critical issues now demanding the attention of International Business teachers and researchers. This book is published annually.

Gender and Sustainable Development Maximising the Economic, Social and Environmental Role of Women

Gender and Sustainable Development Maximising the Economic, Social and Environmental Role of Women PDF Author: OECD
Publisher: OECD Publishing
ISBN: 9264049908
Category :
Languages : en
Pages : 83

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Book Description
Sustainable development depends on maintaining long-term economic, social, and environmental capital. In failing to make the best use of their female populations, most countries are underinvesting in the human capital needed to assure ...