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The Effects of Foreign Direct Investment on Human Development

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Author Info
Basu Sharma (Professor of Industrial Relations and Human Resources Management, University of New Brunswick)
Azmat Gani (Lecturer in Economics, The University of the South Pacific, Suva, Fiji)

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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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Publisher Info
Article provided by International Trade and Finance Association in its journal Global Economy Journal.

Volume (Year): 4 (2007)
Issue (Month): 2 ()
Pages: 9
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Handle: RePEc:bep:glecon:4:2007:2:9

Note: oai:bepress.com:gej-1049
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Related research
Keywords: human development foreign direct investment multinational corporations global welfare

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Stoneman, Colin, 1975. "Foreign capital and economic growth," World Development, Elsevier, vol. 3(1), pages 11-26, January. [Downloadable!] (restricted)
  2. Sen, Amartya, 1981. "Public Action and the Quality of Life in Developing Countries," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 43(4), pages 287-319, November.
  3. Mankiw, N Gregory & Romer, David & Weil, David N, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, MIT Press, vol. 107(2), pages 407-37, May. [Downloadable!] (restricted)
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  4. Fedderke, Johannes & Klitgaard, Robert, 1998. "Economic Growth and Social Indicators: An Exploratory Analysis," Economic Development and Cultural Change, University of Chicago Press, vol. 46(3), pages 455-89, April.
  5. Chamarbagwala, Rubiana & Ramaswamy, Sunder & Wunnava, Phanindra V, 2000. "The Role of Foreign Capital in Domestic Manufacturing Productivity: Empirical Evidence from Asian Economies," Applied Economics, Taylor and Francis Journals, vol. 32(4), pages 393-98, March. [Downloadable!] (restricted)
  6. Romer, Paul M., 1990. "Human capital and growth: Theory and evidence," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 32(1), pages 251-286, January. [Downloadable!] (restricted)
  7. Romer, Paul M, 1994. "The Origins of Endogenous Growth," Journal of Economic Perspectives, American Economic Association, vol. 8(1), pages 3-22, Winter. [Downloadable!] (restricted)
  8. Sen, Amartya, 1998. "Mortality as an Indicator of Economic Success and Failure," Economic Journal, Royal Economic Society, vol. 108(446), pages 1-25, January. [Downloadable!] (restricted)
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  9. Ranis, Gustav & Stewart, Frances & Ramirez, Alejandro, 2000. "Economic Growth and Human Development," World Development, Elsevier, vol. 28(2), pages 197-219, February. [Downloadable!] (restricted)
  10. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July. [Downloadable!] (restricted)
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Cited by:
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  1. Francisco Arcelus & Basu Sharma & Gopalan Srinivasan, 2007. "Foreign Capital Flows and the Efficiency of the HDI Dimensions," Global Economy Journal, International Trade and Finance Association, vol. 5(2), pages 4. [Downloadable!]
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