Human Capital Formation and Foreign Direct Investment in Developing Countries

2003 ◽  
Author(s):  
Koji Miyamoto
Keyword(s):  
Developing Countries ◽  
Human Capital ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Capital Formation ◽  
Human Capital Formation

scholarly journals Foreign Direct Investment and Human Capital Formation

2019 ◽  
Vol 11 (2) ◽  
pp. 163-178
Author(s):  
Maria-Simona Naroș
Keyword(s):  
Human Capital ◽  
Foreign Direct Investment ◽  
Human Resource Development ◽  
Direct Investment ◽  
Professional Training ◽  
Labour Productivity ◽  
Value Added ◽  
Capital Formation ◽  
Human Capital Formation ◽  
Wide Range

Abstract Objective: The main objective of this paper is to reveal the relationship between foreign direct investment (FDI) and human capital. Methodology: The analysis consists in a presentation of main achievements in the literature regarding the contribution of human capital to the attraction of FDI. Findings: The investment in human capital formation has leaded to the increase of labour productivity. This will ultimately result in economic growth. Education has the most important role in the process of human capital formation. Value added: FDI has an important role to play in human resource development through its ability to enhance new skills, information and technologies in multinational enterprises. In this way, FDI becomes a determinant factor for education and professional training, because it is the link between the immediate reality based on creation, introduction of new skills, new technologies and provision of a wide range of information and initial training direction. Recommendations: The economic policies should focus on the attraction of FDI that ensures the improvement of human capital quality. On the other hand, the education policies should focus on a better connection of the human resources to the requirements of the labour market and to offer acknowledge and practice that will help the graduates to correspond to the expectations of foreign investors.

scholarly journals Impact of foreign direct investment on economic growth in Africa

2016 ◽  
Vol 14 (2) ◽  
pp. 289-297 ◽  
Author(s):  
Olawumi D. Awolusi ◽  
Olufemi P. Adeyeye
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Human Capital ◽  
Foreign Direct Investment ◽  
Technology Transfer ◽  
Direct Investment ◽  
Central African Republic ◽  
Capital Formation ◽  
International Technology Transfer ◽  
African Countries

Several studies have been conducted to examine the influence of foreign direct investment (FDI) inflow on economic growth. Indeed, the overall evidence is best characterized as mixed. This paper investigates the effect of FDI on economic growth in some randomly selected African economies from 1980 to 2013, using a modified growth model by Agrawal and Khan (2011). This model consists of Gross Domestic Product, Human Capital, International Technology Transfer, Labor Force, FDI and Gross Capital Formation (GCF). Ordinary least squares and generalized method of moments were used as the estimation techniques. Of all the results, only Gross Capital Formation, Human Capital, and International Technology Transfer in the Central African Republic were found not to have any statistically significant influence on economic growth. In general, the impact of FDI on economic growth in African countries is limited or negligible. Consequently, this study observes that a 1% increase in FDI would result in a 0.12% increase in GDP for South Africa, a 0.05% increase in Egypt, a 0.03% increase in Nigeria, a 0.02% increase in Kenya, and a 1% increase in GDP in the Central African Republic. The findings also reveal that South Africa’s growth is more affected by FDI than the other four countries. The study also provides possible reasons behind South Africa’s great show of FDI and the lessons other African countries could learn from South Africa better utilization of FDI. This study integrates the related drivers of the effectiveness and success of FDI

scholarly journals Brain Drain and Human Capital Formation in Developing Countries: Winners and Losers

2008 ◽  
Vol 118 (528) ◽  
pp. 631-652 ◽  
Author(s):  
Michel Beine ◽  
Fréderic Docquier ◽  
Hillel Rapoport
Keyword(s):  
Developing Countries ◽  
Human Capital ◽  
Brain Drain ◽  
Capital Formation ◽  
Human Capital Formation
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