Modelling the impact of foreign direct investment and human capital on economic growth: empirical evidence from the Philippines

2014 ◽  
Vol 19 (2) ◽  
pp. 272-289 ◽  
Author(s):  
Frank Wogbe Agbola
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Foreign Direct Investment ◽  
Empirical Evidence ◽  
Direct Investment ◽  
The Philippines ◽  
The Impact

scholarly journals Selected macroeconomic determinants and economic growth in Cameroon (1970–2018) “dead or alive” an ARDL approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kesuh Jude Thaddeus ◽  
Chi Aloysius Ngong ◽  
Njimukala Moses Nebong ◽  
Akume Daniel Akume ◽  
Jumbo Urie Eleazar ◽  
...  
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Government Expenditure ◽  
Human Capital Development ◽  
Content Type ◽  
Capital Development ◽  
Macroeconomic Determinants ◽  
The Impact

PurposeThe purpose of this paper is to examine key macroeconomic determinants on Cameroon's economic growth from 1970 to 2018.Design/methodology/approachData were obtained from the World Development Indicators and applied on time series data econometric techniques. The auto-regressive distributed lag (ARDL) bounds model analyzed the data since the variables had different order of integration.FindingsThe results showed long and short runs’ positive and significant connection between economic growth in Cameroon and government expenditure; trade openness, gross capital formation and exchange rate. Human capital development, foreign aid, money supply, inflation and foreign direct investment negatively and significantly affected economic growth in the short and long-runs. Hence, the macroeconomic indicators are not death.Research limitations/implicationsThe present research paper has tried to capture the impact of nine macroeconomic determinants on economic growth such as the government expenditure (LNGOVEXP), human capital development (LNHCD), foreign aids (AID), trade openness (LNTOP), foreign direct investment (LNFDI), gross capital formation (INVEST), broad money (LNM2), official exchange rate (LNEXHRATE) and Inflation (LNINFLA). However, these variables have the tendency to affect each other in a unidirectional or bidirectional manner. Further, the present research paper is unable to capture the impact of other macroeconomic variable due to the unavailability of data.Practical implicationsThe study recommends that Cameroon should use proper planning and strategic policy interventions to achieve higher sustainable economic growth with human capital development, foreign aid, money supply, foreign direct investment and moderate inflation.Social implicationsMacroeconomic indicators, if managed well, increase economic growth.Originality/valueThis paper to the best of the researcher's knowledge presents new background information to both policymakers and researchers on the main macroeconomic determinants using econometric analysis.

scholarly journals The Impact of Human Capital and Foreign Direct Investment on Economic Growth: An Empirical Study on Jordan

2020 ◽  
Vol 10 (2) ◽  
pp. 182
Author(s):  
Mustafa Mohammad Alalawneh
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Advanced Technology ◽  
Bounds Testing ◽  
Long Run ◽  
Auto Regressive ◽  
Human Capital Index ◽  
The Impact

Human capital is a real factor in improving the investment climate and attracting foreign investment. FDI also increases human capital in the host country through the transfer of advanced technology and the rehabilitation of local labor. The importance of the study comes from Jordan's serious endeavor to attract foreign direct investment and to present itself as a rich country in human and qualified capacities. This study examines the effect of human capital and foreign direct investment on economic growth in Jordan employing Auto Regressive Distributed Lags Bounds Testing (ARDL BT) co-integration method for the spanning period from 1984 to 2018. The results indicate that there is a long- run relationship among variables. The results showed that there is a negative and statistically significant effect of human capital index (HCI) on economic growth (GWP) in the long run, and a positive and statistically significant effect of FDI (GFDI) on economic growth (GWP) in the long run. The estimation results indicate that a 1% increase in (HCI) decreases (GWP) by 0.272%, and a 1% increase in (GFDI) increases (GWP) by 0.006%. This study is one of the few studies that highlight the challenges facing both HC and FDI in increasing economic growth in Jordan and provides some recommendations.

The Lagged Effects of Corruption Control, Business Environment and Economic Growth on Foreign Direct Investment in the Philippines

2017 ◽  
Vol 45 (1-2) ◽  
pp. 176-204
Author(s):  
Prinz P. Magtulis ◽  
Sauk-Hee Park
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Business Environment ◽  
The Philippines ◽  
Asia Pacific ◽  
Lagged Effects ◽  
Historical Developments ◽  
High Level ◽  
The Impact

Despite vast natural resources and geographic advantages in the Asia-Pacific region, foreign direct investment (FDI) in the Philippines was ranked among the lowest in the region for the past 30 years. Some challenges, including high-level public corruption, low economic development and the government’s inability to establish a good business environment, are seen to have reduced FDI. Moreover, the Philippines still remains lagging in the South East Asian region in terms of FDI despite recent developments, such as good GDP figures and the reforms put in place by President Benigno Simeon Aquino III. This may imply an interval between the reforms made and their impact on FDI. Thus, this study investigates the lagged effects of the government’s anti-corruption stance, reforms undertaken to facilitate business and economic growth on FDI in the Philippines. In the process, it draws on both qualitative and quantitative data: The latter utilises an auto-regressive distributed lagged model to find possible time intervals on the impact of variables with each other, while the former provides support through a narration of historical developments, trends and explanations rooted on theoretical foundations.

scholarly journals Impact of Foreign Direct Investment on Economic Growth in Ethiopia

2021 ◽  
Vol 4 (10) ◽  
pp. 56
Author(s):  
Abdillahi Nedif Muse ◽  
Saidatulakmal Mohd
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Capital Investment ◽  
Positive Impact ◽  
Vector Autoregressions ◽  
Government Consumption ◽  
Long Run ◽  
The Impact

This article analyses the impact of foreign direct investment (FDI) on Ethiopia’s economic growth. For this purpose, it uses Vector Autoregressions (VARs) model for the period comprised by years 1981-2017. It finds that FDI had a significant positive impact on Ethiopia’s economic growth for both the short and long-run periods. Adequate human capital and stable macroeconomic envirornment have catalysed the contribution of FDI to economic growth. Gross fixed capital formation and government consumption exerted a negative and significant effects on economic growth during the period of interest. Moreover, the study reveals that there is no causal relationship between FDI and economic development. Ethiopia needs to open up the economy and restructure the financial sector to attract foreign multinational companies (MNC), especially in the manufacturing and agro-industry sectors. Human capital investment should be strength to absorb more foreign direct investment and transform the agricultural-based economy to a modern one. Effective budgeting system and prioritisation of government consumption will support a more rapidly growing economy.

scholarly journals Impacts of Foreign Direct Investment on Economic Growth in the East African Community (EAC): Empirical Evidence from Burundi

2020 ◽  
Vol 3 (4) ◽  
Author(s):  
Eric Irakoze ◽  
Baorong YU
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Foreign Direct Investment ◽  
Empirical Evidence ◽  
Direct Investment ◽  
Time Series Data ◽  
Series Data ◽  
Foreign Investors ◽  
East African Community ◽  
Short Run

This study analyzes how Foreign Direct Investment affects the rate of economic development among nations in the EAC with the empirical evidence of Burundi. The paper indicates that there is a link between foreign direct investment(FDI), gross domestic product(GDP), human capital, and openness with support of yearly time-series data from 1989 to 2017. The results from the Vector Error Correction Model (VECM) analysis technics discover that all the variables in long-term they move together. The findings also discovered that there is short-term causality running from GDP and human capital to FDI and no short-run causality found from openness to FDI as a result of Burundi’s policies that do not implement market seeker FDI. For VECM validation, the paper went through some post estimation diagnostic tests such as Lagrange multiplier tests and Jarque-Bera test, the results did not indicate any autocorrelation among the variables as the residuals were normally distributed. Openness being an important factor to attracting foreign investors, it is very crucial for Burundi to revise its trade policies and encourage a conducive environment that promotes foreign investment penetration by promoting and encouraging both domestic and foreign investors and keep improving human capital for more FDI attraction as a goal for Burundi economic growth.

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