The impact of foreign direct investment on human development in developing countries

Pham Thanh, Hien Thuc (2011). The impact of foreign direct investment on human development in developing countries Master's Thesis, School of Economics, The University of Queensland.

       
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Author Pham Thanh, Hien Thuc
Thesis Title The impact of foreign direct investment on human development in developing countries
School, Centre or Institute School of Economics
Institution The University of Queensland
Publication date 2011
Thesis type Master's Thesis
Supervisor Dr. Fabrizio Carmignani
Dr. Sinchan Mitra
Total pages 95
Language eng
Subjects 14 Economics
Formatted abstract

The effects of FDI on economic growth have been extensively examined in the literature. However, research on the impact of FDI on the broader notion of development is quite limited. In this study, I investigate the impact of FDI on human development, using the Human Development Index (HDI) as a proxy for human development. Using panel data for 92 developing countries over the period 1980-2009, I find a positive significant effect of FDI on HDI even after controlling for GDP and other relevant variables. As endogeneity is clearly an econometric issue, this study employs the Instrumental Variables approach.

Keyword Foreign Direct Investment (FDI)
Human Development Index (HDI)

 
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