Is Human Capital a Significant Determinant of Portugal’s FDI Attractiveness?

Ana Teresa Tavares () and Aurora Teixeira ()
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Ana Teresa Tavares: CEMPRE, Faculdade de Economia, Universidade do Porto

FEP Working Papers from Universidade do Porto, Faculdade de Economia do Porto

Abstract: The paper tests whether human capital is a relevant foreign direct investment (FDI) determinant. Drawing on a large-scale survey of firms located in Portugal, and controlling for firms’ structural (i.e. size, age and industry), strategic (R&D and export intensities) and linkages (density of university contacts) variables, our key finding is that, indeed, human capital exerts a positive and significant influence on FDI attraction. Relevant policy implications emerge from the results of this study, at two main levels: (i) policies intended to stimulate human capital formation; and (ii) as regards FDI-focused policies. These policies are discussed in the light of the Portuguese case.

Keywords: Foreign direct investment (FDI); multinational enterprises (MNEs); human capital; education; skills; R&D-performing firms. (search for similar items in EconPapers)
JEL-codes: F23 J24 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2006-05
New Economics Papers: this item is included in nep-edu
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:por:fepwps:211

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