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A NEW DIMENSION TO THE RELATIONSHIP BETWEEN FOREIGN DIRECT INVESTMENT AND HUMAN CAPITAL: THE ROLE OF POLITICAL AND CIVIL RIGHTS
Author(s) -
Dutta Nabamita,
OseiYeboah Kwasi
Publication year - 2013
Publication title -
journal of international development
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.533
H-Index - 66
eISSN - 1099-1328
pISSN - 0954-1748
DOI - 10.1002/jid.1739
Subject(s) - foreign direct investment , civil liberties , human capital , politics , human rights , economics , capital (architecture) , developing country , dimension (graph theory) , investment (military) , international economics , economic system , development economics , international trade , market economy , political science , economic growth , law , macroeconomics , geography , mathematics , archaeology , pure mathematics
Domestic human capital is definitely a determinant of foreign direct investment (FDI) inflows for the developing world. Yet, the contribution of human capital will depend to a great extent on the institutional framework of a nation. Good political rights and civil liberties favour human capital to reap the benefits of FDI inflows more efficiently. Our paper shows that the interlinkages between FDI, human capital and institutions play a very important role in explaining FDI inflows to developing countries. The results show that in the presence of good political rights and civil liberties, the association between human and FDI inflows is enhanced. Copyright © 2010 John Wiley & Sons, Ltd.