Vol. 26 No. 4 (2016)
Artículos de Investigación

Human Capital Formation and Foreign Direct Investment: Is it a nonlinear relationship?

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  • Moisés Alejandro Alarcón Osuna
Moisés Alejandro Alarcón Osuna
Universidad Autónoma de Sinaloa
Bio
DOI: https://doi.org/10.15174/au.2016.1032

Published 2016-09-15

Keywords

  • Human capital formation (HC),
  • foreign direct investment (FDI),
  • panel data,
  • nonlinear relationship,
  • cointegration test.
  • Formación de capital humano (CH),
  • inversión extranjera directa (IED),
  • datos en panel,
  • relación no lineal,
  • pruebas de cointegración.

How to Cite

Alarcón Osuna, M. A. (2016). Human Capital Formation and Foreign Direct Investment: Is it a nonlinear relationship?. Acta Universitaria, 26(4), 66–78. https://doi.org/10.15174/au.2016.1032

Abstract

The purpose of this work is to determine impact of human capital (HC) formation on foreign direct investment (FDI) inflows in Mexico, where there is a lack of these kind studies. The main contribution is to test a nonlinear relationship between HC-FDI with a panel data regression. The panel was constructed for the 32 Federal States in the period of 2007-2012, it is controlled for the larger States (in GDP) and US border States with a dummy variable. Test consist in a nonlinear relationship of tertiary and postgraduate enrollment over FDI with Random Effects, where also a cointegration analysis is done with the Levin and Lin (LL), and the Im, Pesaran and Shin (IPS) tests to validate the long term relationship. Implications are important for Federal States, to configure an appropriate combination of tertiary and postgraduate critical mass of HC to attract FDI inflows.

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