IDEAS home Printed from https://ideas.repec.org/a/ine/journl/v41y2015a50p76-92.html
   My bibliography  Save this article

The relationship between the education system and the inflows of FDI for the Central and East European EU new member states

Author

Listed:
  • Vasile Alecsandru STRAT

    (University of Economic Studies, Bucharest, Romania)

Abstract

The relationship between the inflows of FDI received by a country and its educational system is still a topic under debate. The present work analyzes the linkages created between the inflows of FDI received by a host country and some major aspects related to the educational system using a methodology based on the T-Y procedure. The study uses cross-national yearly data, for the period 1990–2012 for a sample of five new EU member states from Eastern Europe. The study provides evidences that there are important relationships between the educational system and the inflows of FDI (for the analyzed sample).

Suggested Citation

  • Vasile Alecsandru STRAT, 2015. "The relationship between the education system and the inflows of FDI for the Central and East European EU new member states," Romanian Journal of Economics, Institute of National Economy, vol. 41(2(50)), pages 76-92, december.
    • Handle: RePEc:ine:journl:v:41:y:2015:a:50:p:76-92
    as

    Download full text from publisher

    File URL: http://www.revecon.ro/articles/2015-2/2015-2-5.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Beugelsdijk, Sjoerd & Smeets, Roger & Zwinkels, Remco, 2008. "The impact of horizontal and vertical FDI on host's country economic growth," International Business Review, Elsevier, vol. 17(4), pages 452-472, August.
    2. Gheorghe ZAMAN & Valentina VASILE & Mirela MATEI & Carmen CROITORU & George ENESCU, 2011. "Some challenging (macro)economic aspects of FDI in Romania," Romanian Journal of Economics, Institute of National Economy, vol. 33(2(42)), pages 21-58, December.
    3. Miao Wang, 2009. "Manufacturing FDI and economic growth: evidence from Asian economies," Applied Economics, Taylor & Francis Journals, vol. 41(8), pages 991-1002.
    4. Nagesh Kumar & Alka Chadha, 2009. "India’s Outward Foreign Direct Investments in Steel Industry in a Chinese Comparative Perspective," Trade Working Papers 22784, East Asian Bureau of Economic Research.
    5. Assaf Razin & Yona Rubinstein & Efraim Sadka, 2003. "Which Countries Export FDI, and How Much?," NBER Working Papers 10145, National Bureau of Economic Research, Inc.
    6. Magdalena RADULESCU & Elena Nolica DRUICA, 2011. "FDIs and investment policy in some European countries after their EU accession. Challenges during the crisis," Romanian Journal of Economics, Institute of National Economy, vol. 33(2(42)), pages 169-183, December.
    7. Noorbakhsh, Farhad & Paloni, Alberto & Youssef, Ali, 2001. "Human Capital and FDI Inflows to Developing Countries: New Empirical Evidence," World Development, Elsevier, vol. 29(9), pages 1593-1610, September.
    8. Elizabeth Asiedu, 2006. "Foreign Direct Investment in Africa: The Role of Natural Resources, Market Size, Government Policy, Institutions and Political Instability," The World Economy, Wiley Blackwell, vol. 29(1), pages 63-77, January.
    9. Nomathemba Mhlanga & Garrick Blalock & Ralph Christy, 2010. "Understanding foreign direct investment in the southern African development community: an analysis based on project‐level data," Agricultural Economics, International Association of Agricultural Economists, vol. 41(3‐4), pages 337-347, May.
    10. Ram, Rati & Zhang, Kevin Honglin, 2002. "Foreign Direct Investment and Economic Growth: Evidence from Cross-Country Data for the 1990s," Economic Development and Cultural Change, University of Chicago Press, vol. 51(1), pages 205-215, October.
    11. Dumitru MOLDOVANU, 2008. "Are Foreign Direct Investments An Instrument Of Shifting The Moldavian Economy To A Superior Level Of International Specialisation?," Romanian Journal of Economics, Institute of National Economy, vol. 26(1(35)), pages 121-132, June.
    12. Schneider, Friedrich & Frey, Bruno S., 1985. "Economic and political determinants of foreign direct investment," World Development, Elsevier, vol. 13(2), pages 161-175, February.
    13. Matthew J. Slaughter, 2004. "Skill Upgrading in Developing Countries: Has Inward Foreign Direct Investment Played a Role?," Palgrave Macmillan Books, in: William Milberg (ed.), Labor and the Globalization of Production, chapter 6, pages 121-145, Palgrave Macmillan.
    14. Nagesh Kumar & Alka Chadha, 2009. "India's outward foreign direct investments in steel industry in a Chinese comparative perspective," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 18(2), pages 249-267, April.
    15. Asiedu, Elizabeth, 2002. "On the Determinants of Foreign Direct Investment to Developing Countries: Is Africa Different?," World Development, Elsevier, vol. 30(1), pages 107-119, January.
    16. Koji Miyamoto, 2003. "Human Capital Formation and Foreign Direct Investment in Developing Countries," OECD Development Centre Working Papers 211, OECD Publishing.
    17. Oana - Cristina POPOVICI & Adrian Cantemir CALIN & Mihaela SIMIONESCU, 2014. "Investigating Fdi Inflows In Romania Through An Arma Model," Internal Auditing and Risk Management, Athenaeum University of Bucharest, vol. 35(1), pages 55-72, September.
    18. Svetlana Ledyaeva, 2009. "Spatial Econometric Analysis of Foreign Direct Investment Determinants in Russian Regions," The World Economy, Wiley Blackwell, vol. 32(4), pages 643-666, April.
    19. Christian Bellak & Markus Leibrecht, 2009. "Do low corporate income tax rates attract FDI? - Evidence from Central- and East European countries," Applied Economics, Taylor & Francis Journals, vol. 41(21), pages 2691-2703.
    20. Matthew J. Slaughter, 2002. "Skill Upgrading in Developing Countries: Has Inward Foreign Direct Investment Played a Role?," OECD Development Centre Working Papers 192, OECD Publishing.
    21. Emmanuel Cleeve, 2008. "How effective are fiscal incentives to attract FDI to Sub-Saharan Africa?," Journal of Developing Areas, Tennessee State University, College of Business, vol. 42(1), pages 135-153, September.
    22. Sufian Eltayeb Mohamed & Moise G. Sidiropoulos, 2010. "Another Look At The Determinants Of Foreign Direct Investment In Mena Countries: An Empirical Investigation," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 35(2), pages 75-95, June.
    23. Adriana AnaMaria DAVIDESCU (ALEXANDRU), 2014. "Estimating The Size Of Romanian Shadow Economy. A Labour Approach," Journal of Social and Economic Statistics, Bucharest University of Economic Studies, vol. 3(1), pages 25-37, JULY.
    24. Xu, Bin, 2000. "Multinational enterprises, technology diffusion, and host country productivity growth," Journal of Development Economics, Elsevier, vol. 62(2), pages 477-493, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kottaridi, Constantina & Louloudi, Konstantina & Karkalakos, Sotiris, 2019. "Human capital, skills and competencies: Varying effects on inward FDI in the EU context," International Business Review, Elsevier, vol. 28(2), pages 375-390.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Aurora A.C. Teixeira & Rosa Forte & Susana Assunção, 2017. "Do countries' endowments of non-renewable energy resources matter for FDI attraction? A panel data analysis of 125 countries over the period 1995–2012," International Economics, CEPII research center, issue 150, pages 57-71.
    2. Assad Ullah & Yang Qingxiang & Mohammad Abdul Kamal & Zahid Ali4, 2015. "Domestic Investment Climate And Foreign Direct Investment In South Asia: A Panel Data Evidence," IBT Journal of Business Studies (JBS), Ilma University, Faculty of Management Science, vol. 11(2), pages 149-164.
    3. Assad Ullah & Yang Qingxiang & Mohammad Abdul Kamal & Zahid Ali4, 2015. "Domestic Investment Climate And Foreign Direct Investment In South Asia: A Panel Data Evidence," IBT Journal of Business Studies (JBS), Ilma University, Faculty of Management Science, vol. 11(2), pages 11-12.
    4. John Anyanwu, 2011. "Working Paper 136 - Determinants of Foreign Direct Investment Inflows to Africa, 1980-2007," Working Paper Series 327, African Development Bank.
    5. Jonas Kleineick & Andrea Ascani & Martijn Smit, 2020. "Multinational investments across Europe: a multilevel analysis," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 40(1), pages 67-105, April.
    6. Akhtaruzzaman, M. & Berg, Nathan & Hajzler, Christopher, 2017. "Expropriation risk and FDI in developing countries: Does return of capital dominate return on capital?," European Journal of Political Economy, Elsevier, vol. 49(C), pages 84-107.
    7. Rao, R. Kavita & Sengupta, D.P., 2014. "Action Plan on Base Erosion and Profit Shifting: An Indian Perspective," Working Papers 14/133, National Institute of Public Finance and Policy.
    8. Ramesh Bommadevara & Akshay Sakharkar, 2021. "Do Good Institutions and Economic Uncertainty Matter to Foreign Direct Investment?," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 11(6), pages 471-487, June.
    9. John C. Anyanwu, 2012. "Why Does Foreign Direct Investment Go Where It Goes?: New Evidence From African Countries," Annals of Economics and Finance, Society for AEF, vol. 13(2), pages 425-462, November.
    10. George Owusu-Antwi & Dwobeng Owusu Nyamekye & Patrick Ofei & Frederick A. Aikens, 2019. "Foreign Direct Investment: Is Natural Resources the Rejoin? Evidence from Ghana, Nigeria, and Togo: Fixed Effect Approach," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 9(12), pages 588-606, December.
    11. Alfalih, Abdullah Abdulmohsen & Bel Hadj, Tarek, 2020. "Foreign direct investment determinants in an oil abundant host country: Short and long-run approach for Saudi Arabia," Resources Policy, Elsevier, vol. 66(C).
    12. Federico Carril-Caccia & Juliette Milgram-Baleix & Jordi Paniagua, 2019. "Foreign Direct Investment in oil-abundant countries: The role of institutions," PLOS ONE, Public Library of Science, vol. 14(4), pages 1-23, April.
    13. Saleh, Ali Salman & Anh Nguyen, Thi Lan & Vinen, Denis & Safari, Arsalan, 2017. "A new theoretical framework to assess Multinational Corporations’ motivation for Foreign Direct Investment: A case study on Vietnamese service industries," Research in International Business and Finance, Elsevier, vol. 42(C), pages 630-644.
    14. Alsan, Marcella & Bloom, David E. & Canning, David, 2006. "The effect of population health on foreign direct investment inflows to low- and middle-income countries," World Development, Elsevier, vol. 34(4), pages 613-630, April.
    15. Asamoah, Michael Effah & Adjasi, Charles K.D. & Alhassan, Abdul Latif, 2016. "Macroeconomic uncertainty, foreign direct investment and institutional quality: Evidence from Sub-Saharan Africa," Economic Systems, Elsevier, vol. 40(4), pages 612-621.
    16. 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.
    17. Céline Azémar & Rodolphe Desbordes, 2009. "Public Governance, Health and Foreign Direct Investment in Sub-Saharan Africa," Journal of African Economies, Centre for the Study of African Economies, vol. 18(4), pages 667-709, August.
    18. Olawumi D Awolusi & Theuns G Pelser & Adedeji Saidi Adelekan, 2016. "Determinants of Foreign Direct Investment: New Granger Causality Evidence from Asian and African Economies," Journal of Economics and Behavioral Studies, AMH International, vol. 8(1), pages 104-119.
    19. Marcella Alsan & David E. Bloom & David Canning, 2004. "The Effect of Population Health on Foreign Direct Investment," NBER Working Papers 10596, National Bureau of Economic Research, Inc.
    20. Kimiagari, Salman & Mahbobi, Mohammad & Toolsee, Tushika, 2023. "Attracting and retaining FDI: Africa gas and oil sector," Resources Policy, Elsevier, vol. 80(C).

    More about this item

    Keywords

    Foreign Direct Investments; school enrolment; human capital; causality relation; Toda-Yamamoto procedure;
    All these keywords.

    JEL classification:

    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • F62 - International Economics - - Economic Impacts of Globalization - - - Macroeconomic Impacts
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ine:journl:v:41:y:2015:a:50:p:76-92. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Valentina Vasile (email available below). General contact details of provider: https://edirc.repec.org/data/inacaro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.