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Tertiary Levels of Education and Foreign Direct Investment: Evidence from Europe

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  • George Pantelopoulos

    (University of Peloponnese)

Abstract

Education, as the main instrument of a country’s human capital, plays a vital role in qualitative direct investments, particularly for developed economies. This study examines the degree to which the distribution of students across different Tertiary academic levels, as obtained from UNESCO’s International Standard Classification of Education (ISCED) data, affects inward foreign direct investment (FDI) for European 27 counties. Tertiary programmes with an academic orientation (Type 5A) and those that lead to advanced research qualification (Type 6) have a higher impact compared to those with an occupation orientation (Type 5B). Our results can provide useful insights for governments and policymakers.

Suggested Citation

  • George Pantelopoulos, 2023. "Tertiary Levels of Education and Foreign Direct Investment: Evidence from Europe," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(2), pages 1488-1502, June.
    • Handle: RePEc:spr:jknowl:v:14:y:2023:i:2:d:10.1007_s13132-022-00931-0
    DOI: 10.1007/s13132-022-00931-0
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    More about this item

    Keywords

    Foreign direct investment; Human capital; ISCED Tertiary levels of education; Europe;
    All these keywords.

    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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