Is Human Capital a Significant Determinant of Portugal’s FDI Attractiveness?
AbstractThe paper tests whether human capital is a relevant foreign direct investment (FDI) determinant. Drawing on a large-scale survey of firms located in Portugal, and controlling for firms’ structural (i.e. size, age and industry), strategic (R&D and export intensities) and linkages (density of university contacts) variables, our key finding is that, indeed, human capital exerts a positive and significant influence on FDI attraction. Relevant policy implications emerge from the results of this study, at two main levels: (i) policies intended to stimulate human capital formation; and (ii) as regards FDI-focused policies. These policies are discussed in the light of the Portuguese case.
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Bibliographic InfoPaper provided by Universidade do Porto, Faculdade de Economia do Porto in its series FEP Working Papers with number 211.
Length: 28 pages
Date of creation: May 2006
Date of revision:
Foreign direct investment (FDI); multinational enterprises (MNEs); human capital; education; skills; R&D-performing firms.;
Find related papers by JEL classification:
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
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