Local human capital formation and optimal FDI
Muhammad Asali (),
Adolfo Cristóbal and
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Adolfo Cristóbal: Universidad Loyola Andalucía
Avner Shaked: University of Bonn
Working Papers from Universidad Loyola AndalucÃa, Department of Economics
This paper lends both theoretical and empirical support to the notion of optimal FDI levels. It does so by uncovering an inverted-U-shaped relationship between FDI and human capital formation. The optimality of a particular FDI inflow depends on the educational incentives induced by FDI on the local, heterogeneous population. Our estimates confirm the significance of a positive (linear) and a negative (non-linear) impact of FDI stocks on tertiary schooling, which are exclusively relevant in developing countries.
Keywords: FDI; Human Capital; Skills; Asymmetric Information. (search for similar items in EconPapers)
JEL-codes: F23 H52 J24 (search for similar items in EconPapers)
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Journal Article: Local human capital formation and optimal FDI (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:loy:wpaper:2015-002
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