Foreign Direct Investment, human capital and non-linearities in economic growth

Constantina Kottaridi and Thanasis Stengos

No 19, Working Papers from University of Peloponnese, Department of Economics

Abstract: This paper makes a contribution to the existing literature on the foreign direct investment (FDI) and economic growth nexus by contrasting past empirical evidence and conventional wisdom and arriving at some interesting new results. By applying non-parametric methods, and thus taking into account nonlinear effects of initial income and human capital on economic growth, we explore the FDI effect on growth in much greater detail than previous studies. Our findings not only confirm the nonlinear effect of human capital in the presence of FDI inflows but also suggest that FDI inflows are growth enhancing in the middle-income countries while there is a ‘two-regime FDI effect for high income countries. This new finding appears to be independent of OECD country membership.

Keywords: cross country growth regressions; FDI; human capital; semi-parametric model (search for similar items in EconPapers)
Pages: 36 pages
Date: 2008
New Economics Papers: this item is included in nep-dev and nep-hrm
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://econ.uop.gr/~econ/RePEc/pdf/Kottaridi_Stengos.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to econ.uop.gr:80 (A connection attempt failed because the connected party did not properly respond after a period of time, or established connection failed because connected host has failed to respond.)

Related works:
Journal Article: Foreign direct investment, human capital and non-linearities in economic growth (2010)
Working Paper: FOREIGN DIRECT INVESTMENT, HUMAN CAPITAL AND NONLINEARITIES IN ECONOMIC GROWTH (2008)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:uop:wpaper:019

Access Statistics for this paper

More papers in Working Papers from University of Peloponnese, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Kleanthis Gatziolis (kgatziol@uop.gr).