Linking Global Competitiveness, Higher Education, and Foreign Direct Investment Inflows

• Main Authors: Biares, Rhesty R., Tullao, Tereso S., Jr
• Format: text
• Published: Animo Repository 2018
• Subjects: Foreign Direct Investments; Higher Education; Human Capital; Infrastructure Development; Research and Development
• Online Access: https://animorepository.dlsu.edu.ph/res_aki/38; https://animorepository.dlsu.edu.ph/cgi/viewcontent.cgi?article=1039&context=res_aki
• Institution: De La Salle University

Foreign Direct Investments (FDI) has contributed to the accumulation of capital and the improvement of the economy’s productive capacity through the incorporation of new inputs and modern technologies in the production process. Neoclassical and endogenous growth models have been widely used to empirically test the benefits of FDI (Almfraji & Almsafir, 2014). However, results of testing theoretical benefits are varying from regions, countries, and industries. Conflicting relationships and impacts range from significant to non-significant, positive to negative impacts, directly or indirectly. Despite that, FDI inflows have still been recognized to influence employment and wages, infrastructure development, human capital development, technology transfer, and promotion of trade which could have a short and long-term effect on economic of growth of a country. Recognizing the impact of FDI on the development of an economy, many researchers tried to elucidate the factors that encourage foreign countries to invest in a specific economy.