Search

Can corruption affect the relationship between human capital and FDI for a host country? This paper explores the interactive impact of corruption and human capital on FDI. In particular, we investigate whether countries with higher or lower corruption levels benefit differently in terms of FDI inflow following an equal improvement in the level of human capital. Employing an extensive panel data and robust identification strategies, our results suggest that if the corruption score of a highly corrupt country becomes comparable to that of a low corruption country, FDI inflow will rise by almost 40 percent for an equivalent rise in human capital stock. The results remain robust for various measures of human capital. [ABSTRACT FROM AUTHOR]

The existing literature has focussed extensively on the development outcomes resulting from international migrant remittances. Yet, the human capital channel promoting remittance effectiveness has received little attention. Given the multilateral policy drive to promote female literacy in recent decades, it is relevant to examine whether female human capital formation improves the effectiveness of remittances in terms of its impact on per capita income. Using a panel of 103 developing economies over the period 1970–2012, this paper attempts to answer this question empirically. The paper finds that female human capital affects the remittance-growth relationship differently according to whether it is the primary, secondary or tertiary level of human capital. Our estimates of the marginal impacts of remittances show that while higher levels of skilled human capital (secondary and tertiary enrolments) enhance the marginal impact of remittances on per capita income, low-skilled human capital (primary enrolments) fails to do so. Our conclusion stresses the need to encourage female human capital beyond the promotion of literacy rates in developing countries. [ABSTRACT FROM PUBLISHER]

Using data covering 1970-2008 for South Asia, this study investigates the influence of human capital disaggregated by gender, on economic growth. We use an extended version of the Solow growth model with per capita gross domestic product ( GDP) a function of the key variables, viz. physical capital accumulation, human capital accumulation, trade openness and capital flows, fiscal policy and financial development. The key contribution of this study is to show that openness when interacted with the human capital stock disaggregated by gender, has differential impacts on economic growth. While the positive impact of male secondary schooling captures the direct skill effect relative to primary schooling, the marginal influence of female primary/secondary schooling fails to show a positive impact on growth at higher levels of openness. An implication stemming from this study is that educational opportunities for females at the secondary level should be increased for South Asia. [ABSTRACT FROM AUTHOR]

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. [ABSTRACT FROM AUTHOR]