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Foreign investment, human capital and manufacturing sector growth in Singapore

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  • Anwar, Sajid

Abstract

Foreign investment has been long regarded as the main driver of Singapore's manufacturing sector growth. By making use of annual data for the period 1980-2005, this paper argues that in addition to foreign investment, human capital is also playing a significant role in foresting manufacturing sector growth in Singapore. Empirical analysis shows that foreign investment, human capital and value added in manufacturing are cointegrated. The paper also argues that continued growth into the future requires further diversification of the manufacturing sector and increased spending on R&D and advanced education.

Suggested Citation

  • Anwar, Sajid, 2008. "Foreign investment, human capital and manufacturing sector growth in Singapore," Journal of Policy Modeling, Elsevier, vol. 30(3), pages 447-453.
    • Handle: RePEc:eee:jpolmo:v:30:y:2008:i:3:p:447-453
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    Cited by:

    1. Gnanaraj Chellaraj & Keith E. Maskus & Aaditya Mattoo, 2013. "Labor Skills and Foreign Investment in a Dynamic Economy: Estimating the Knowledge-capital Model for Singapore," Review of Development Economics, Wiley Blackwell, vol. 17(4), pages 627-643, November.
    2. Anwar, Sajid & Cooray, Arusha, 2015. "Financial flows and per capita income in developing countries," International Review of Economics & Finance, Elsevier, vol. 35(C), pages 304-314.
    3. Sakib, S M Nazmuz, 2021. "Factors which are Affecting Human Capital in Singapore," Thesis Commons 38txr, Center for Open Science.
    4. Anwar, Sajid & Sun, Sizhong, 2014. "Heterogeneity and curvilinearity of FDI-related productivity spillovers in China's manufacturing sector," Economic Modelling, Elsevier, vol. 41(C), pages 23-32.
    5. Kwang-Myoung Hwang & Donghyun Park & Kwanho Shin, 2013. "Capital Market Openness and Output Volatility," Pacific Economic Review, Wiley Blackwell, vol. 18(3), pages 403-430, August.
    6. Arjun K. & Sanjay Kumar & A. Sankaran & Mousumi Das, 2021. "Open Door System and Endogenous Growth in Indian Economy: An Empirical Analysis on the Role of Human Capital and R&D in Explaining Industrial Productivity," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 46(1), pages 24-37, February.
    7. Harpaljit Kaur & Baharom A.H & Muzafar Shah Habibullah, 2014. "Linkages between education expenditure and economic growth: Evidence from CHINDIA," E3 Journal of Business Management and Economics., E3 Journals, vol. 5(5), pages 109-119.
    8. Chellaraj,Gnanaraj & Mattoo,Aaditya & Chellaraj,Gnanaraj & Mattoo,Aaditya, 2015. "Can the knowledge capital model explain foreign investment in services ? the case of Singapore," Policy Research Working Paper Series 7186, The World Bank.
    9. Imran Ahmad & Karim Alam, 2015. "Credit Flows to Pakistan’s Manufacturing SME Sector," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 20(Special E), pages 261-270, September.
    10. Brock, Gregory & German-Soto, Vicente, 2013. "Regional industrial growth in Mexico: Do human capital and infrastructure matter?," Journal of Policy Modeling, Elsevier, vol. 35(2), pages 228-242.
    11. Olusanya, Oluwakorede, 2020. "Asymmetric Effect of Foreign Direct Investment on Manufacturing Sector Performance in Nigeria," MPRA Paper 113029, University Library of Munich, Germany.
    12. Gnanaraj Chellaraj & Aaditya Mattoo, 2009. "Can the Knowledge-Capital Model Explain Sectoral Foreign Invesment? Evidence From Singapore," Economics Study Area Working Papers 101, East-West Center, Economics Study Area.

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