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A New Dimension to the Relationship Between Foreign Direct Investment and Human Capital: the Role of Political and Civil Rights

Year: 2010
Type: article
Abstract: Domestic human capital is definitely a determinant of foreign direct investment (FDI) inflows for the developing world. Yet, the contribution of human capital will depend to a great extent on the institutional framework of a nation. Good political rights and civil liberties favour human capital to reap the benefits of FDI inflows more efficiently. Our paper shows that the interlinkages between FDI, human capital and institutions play a very important role in explaining FDI inflows to developing countries. The results show that in the presence of good political rights and civil liberties, the association between human and FDI inflows is enhanced. Copyright © 2010 John Wiley & Sons, Ltd.
Language: English
Open Access status: green
OpenAlex ID: W2151518721
FWCI: 3.253
Cites: 82
Cited by: 43
Related to: 10