FOREIGN DIRECT INVESTMENT, HUMAN CAPITAL AND NONLINEARITIES IN ECONOMIC GROWTH

Thanasis Stengos () and Constantina Kottaridi

Working Paper Series from Rimini Centre for Economic Analysis

Abstract: This paper examines the effect of FDI on the process of economic growth by allowing the impact to differ both across each country and also across each time period. We apply non-parametric techniques taking into account the previously documented nonlinear effects of initial income and human capital on economic growth. We use a wide range of countries, both developed and developing in order to be able to distinguish potential differential effects between the two groups. Our findings suggest that FDI inflows have a moderately nonlinear effect on growth and that the human capital nonlinear effect in the presence of FDI inflows is similar to the one found elsewhere in the relevant literature. Classification-JEL: O47

Keywords: cross country growth regressions; FDI; human capital; semi-parametric additive model (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-hrm
Date: 2008-01, Revised 2008-01

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Related works:
Working Paper: Foreign Direct Investment, human capital and non-linearities in economic growth (2008)
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Persistent link: http://EconPapers.repec.org/RePEc:rim:rimwps:20-08

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