Education and FDI: An Insight from US Outflows
Journal Title: Journal of Social Economics - Year 2015, Vol 2, Issue 3
Abstract
In modern economies the movement of capital has become more and more a key element and thereby the role of Foreign Direct Investments (FDI). The literature about FDI is truly comprehensive and deepened, ranging from the relationships between FDI and other socio-economic variables to the benefits and drawbacks they may produce, as well as the determinants that can stimulate their growth. Nevertheless, despite the wide range of studies and researches, the role which education plays in relation to these investment flows seems to have been often neglected. The purpose of this study is to try to identify some preliminary evidences of a connection between FDI and the level of education. In particular, we want to test whether FDI are sensitive to the level of education of the destination countries’ labour force. In order to do that, we performed a panel regression of the United States FDI outflows from 1999 to 2012 (Bureau of Economic Analysis data), testing for the statistical significance of variables which account for the level of education on the population (and, thus, the labour force) of the receiving countries. Regressions are performed both on the entire statistical population and on two subsamples, OECD and non-OECD countries. Our results show that, on the base of our theoretical and methodological assumptions, the FDI inflows seems to be connected to the level of education of the receiving countries labour force. In particular, it seems to be true for FDI with a high content of knowledge and for OECD countries.
Authors and Affiliations
Silvio Traverso, Guido Bonatti
Keywords
Related Articles
- EP ID EP28664
- DOI -
- Views 297
- Downloads 7
Effect of Inflation on Minimum Wages in Kenya
The history of minimum wages in Kenya dates back to 1932. Minimum wages have been increasing at a rate lower than the rate of inflation, yet inflation is one of the parameters to be considered while fixing minimum wage...
Economics of Urban Crime: The Ile-Ife, Nigeria Experience
Having obtained information through systematic sampling of 334 households, the study examined cost associated with crime among the residents of Ile-Ife, Nigeria. Findings revealed that the most dreaded crime event amon...
Education as a Social Good for Economic Growth in Hawaii
In this paper, we use data on secondary school graduates per worker in Hawaii as a proxy for social good and human capital to examine its effect on economic growth in Hawaii. The aggregate-data analysis shows that Hawa...
Value Orientation through Social Studies and Students’ Adjustment to Delinquent Social Behaviour in Akwa Ibom North East Senatorial District of Nigeria
Values may be acquired through formal education or through the family, mass media and other agents of interaction, but adjustment can also develop from within oneself. Education is capable of not only teaching but tran...
What is the Effect of Inflation on Consumer Spending Behaviour in Ghana?
The paper examines the effect of inflation on consumer spending behaviour in Ghana during the period 1964 to 2013 using annual data. The analysis of the results was done using Ordinary least square test (OLS), the Joha...