The Effects of Foreign Direct Investment on Human Development

Basu Sharma · Azmat Gani

131 citations0/0 files storedGlobal economy journal

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International Business and FDI Economic Growth and Productivity Economic Growth and Development

Abstract

Various studies in the past have examined the effect of foreign direct investment on economic growth of both developed and developing countries. However, research on the influence of foreign direct investment on an expanded conception of socio-economic progress such as human development is absent. In this article, we examine the effect of foreign direct investment on human development (measured by the human development index) for middle and low-income countries for the period from 1975 to 1999 to fill in this lacuna. Regression results of a fixed effects model indicate a positive effect of foreign direct investment on human development for both the groups of countries.

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References

1956A Contribution to the Theory of Economic Growth 1988On the mechanics of economic development 1986Increasing Returns and Long-Run Growth 1992A Contribution to the Empirics of Economic Growth 1989Economic Growth in a Cross Section of Countries 1994The Origins of Endogenous Growth 1987Commodities and Capabilities 1989Human Capital And Growth: Theory and Evidence

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