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Samina Sabir
University of Azad Jammu and Kashmir
Corresponding Author
ORCiD: https://orcid.org/0000-0002-0566-1014
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There are numerous factors such as absorptive capacity along with other are very important to make foreign direct investment (FDI) more effective for economic growth and development. There are numerous indicators of absorptive capacity such as human capital, technology, infrastructure, institutional quality, GDP per capita, and trade openness. This study determines the effect of absorptive capacity on FDI in South Asian countries over the time period 1984–2017 using system Generalized Method of Moment (GMM). The study found that absorptive indicators such as trade openness, infrastructure, institutional quality, human capital, GDP per capita, and technology are positively related to foreign direct investment in South Asian countries but human capital is the more effective determinant of FDI. Therefore it is necessary to increase human capital, free trade, infrastructure, technological innovations and institutional quality to effectively absorb the benefit and spillover effects of FDI which boosts economic growth and development.
Keywords
FDI, Human capital, infrastructure, institutions, trade openness, technology
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A new preprint design is coming!
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This is a preprint, a preliminary version of a manuscript that has not completed peer review at a journal. Research Square does not conduct peer review prior to posting preprints. The posting of a preprint on this server should not be interpreted as an endorsement of its validity or suitability for dissemination as established information or for guiding clinical practice.
Research
Samina Sabir
University of Azad Jammu and Kashmir
Corresponding Author
ORCiD: https://orcid.org/0000-0002-0566-1014
Badges
Prescreen
This manuscript passed our Prescreen assessment
Complete author information
Appropriate declaration statements
Potential risks to human health
Prescreen
History
CURRENT STATUS: Posted
Version 1
Posted 21 May, 2020
No community comments so far
Metrics
Comments: 0
PDF Downloads: ...
HTML Views: ...
Subject Areas
Other Economics
License:
This work is licensed under a CC BY 4.0 License. Read Full License
There are numerous factors such as absorptive capacity along with other are very important to make foreign direct investment (FDI) more effective for economic growth and development. There are numerous indicators of absorptive capacity such as human capital, technology, infrastructure, institutional quality, GDP per capita, and trade openness. This study determines the effect of absorptive capacity on FDI in South Asian countries over the time period 1984–2017 using system Generalized Method of Moment (GMM). The study found that absorptive indicators such as trade openness, infrastructure, institutional quality, human capital, GDP per capita, and technology are positively related to foreign direct investment in South Asian countries but human capital is the more effective determinant of FDI. Therefore it is necessary to increase human capital, free trade, infrastructure, technological innovations and institutional quality to effectively absorb the benefit and spillover effects of FDI which boosts economic growth and development.
This is a list of supplementary files associated with this preprint. Click to download.
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