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Accumulation of Human Capital and FDI Inflows in ASEAN-3 Countries (Malaysia, Thailand, Indonesia)

Author

Listed:
  • Heirsh SOLTANPANAH

    (Department of Management, Sanandaj Branch, Islamic Azad University, Sanandaj, Iran)

  • Mohammad Sharif KARIMI

    (Department of Management, Sanandaj Branch, Islamic Azad University, Sanandaj, Iran)

Abstract

The event of globalization and the increasing inflows of FDI to developing countries create a potential for technology transfers and spillovers which suggest a potential for future growth of human capital, and output. There is a noticeable lack of empirical findings in the literature on the impact of FDI on the accumulation of human capital in developing countries. In this paper we investigate the relationship between accumulation of human capital and FDI inflows for three ASEAN countries (Malaysia, Thailand and Indonesia) during period 1985-2005. We use a new human capital indicator and an econometric method which is based on a panel dynamic method (System GMM), the empirical finding shows FDI inflows has a positive and statistically significant impact on accumulation of human capital in Malaysia, Thailand and Indonesia.

Suggested Citation

  • Heirsh SOLTANPANAH & Mohammad Sharif KARIMI, 2011. "Accumulation of Human Capital and FDI Inflows in ASEAN-3 Countries (Malaysia, Thailand, Indonesia)," Timisoara Journal of Economics, West University of Timisoara, Romania, Faculty of Economics and Business Administration, vol. 4(2(14)), pages 123-130.
  • Handle: RePEc:wun:journl:tje:v04:y2011:i2(14):a06
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    Cited by:

    1. Cleeve, Emmanuel A. & Debrah, Yaw & Yiheyis, Zelealem, 2015. "Human Capital and FDI Inflow: An Assessment of the African Case," World Development, Elsevier, vol. 74(C), pages 1-14.

    More about this item

    Keywords

    Foreign Direct Investment; Human Capital; dynamic panel data;

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements

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