Effect of Human Capital on Foreign Direct Investment Inflows

Abstract

The purpose of this study is to assess whether and to what extent HC contributes to national economies, and the influence it has on subsequent FDI flowing into those economies. A systematic empirical study based on the Generalized Method of Moments (GMM) for 50 developed and developing countries has been undertaken by this study; in order to evaluate the role of HC on FDI inflows using all indicators previously used as a HC proxy in previoues studies.