The Impact of Human Capital on FDI with New Evidence from Bootstrap Panel Granger Causality Analysis
Pegah Sadeghi (),
Hamid Shahrestani (),
Kambiz Hojhabr Kiani () and
Taghi Torabi ()
Additional contact information
Pegah Sadeghi: Department of Economic, Science and Research branch, Islamic Azad University, Tehran, Iran.
Hamid Shahrestani: Department of Economic, Science and Research branch, Islamic Azad University, Tehran, Iran.
Kambiz Hojhabr Kiani: Department of Economic, Science and Research branch, Islamic Azad University, Tehran, Iran.
Taghi Torabi: Department of Economic, Science and Research branch, Islamic Azad University, Tehran, Iran.
Iranian Economic Review (IER), 2018, vol. 22, issue 1, 215-233
Abstract:
This study evaluates the causality relationship between human capital and foreign direct investment inflow in twenty-six OIC (the Organization of Islamic Cooperation) countries over the period 1970–2014. We employed the panel Granger non-causality testing approach of Kònya (2006) that is based on seemingly unrelated regression (SUR) systems, and Wald tests with country specific bootstrap critical values. The approach allows one to test for Granger non-causality on each member of panel, separately by taking into account the cross-sectional dependency and slope heterogeneity among countries investigated simultaneously. We found that the hypothesis of Granger non-causality from human capital to foreign direct investment (FDI) was rejected for more than half of the sample countries, mainly among African states. In addition, the effect magnitude of human capital on FDI varies among the states significantly.
Keywords: Foreign Direct Investment (FDI); Human Capital; Seemingly Unrelated Equation System; Bootstrapping; OIC Countries. (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)
Downloads: (external link)
ftp://80.66.179.253/eut/journl/20181-9.pdf (application/pdf)
Related works:
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:eut:journl:v:22:y:2018:i:1:p:215
Access Statistics for this article
Iranian Economic Review (IER) is currently edited by Dr.Hossien Abbasinejad
More articles in Iranian Economic Review (IER) from Faculty of Economics,University of Tehran.Tehran,Iran Contact information at EDIRC.
Bibliographic data for series maintained by [z.rahimalipour] ().