Human Capital and FDI Inflow: An Assessment of the African Case

Cleeve, Emmanuel; Debrah, Yaw A.; Yiheyis, Zelealem

doi:10.1016/j.worlddev.2015.04.003

Cited by 128 publications

(116 citation statements)

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“…In other words, do the principles inherent in African concepts such as Ubuntu offer any marketing lesson for corporations in other markets? In this direction, we want to draw scholarly attention to the issue of marketing human capital development as a source of competitive advantage creation for internationalizing African firms (Cleeve, Debrah and Yiheyis, 2015).…”

Section: Conclusion and Future Research Opportunitiesmentioning

confidence: 99%

Africa rising in an emerging world: an international marketing perspective

Amankwah‐Amoah

Boso

Debrah

2018

IMR

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Purpose: The primary goal of this introductory article is to highlight important contemporary themes in international marketing strategy from the perspective of Sub-Saharan African firms.Design/methodology/approach: The approach adopted is a review and synopsis of the existing body of research on international marketing research in Sub-Saharan African, and a discussion of the manuscripts included in the special issue. Findings:International marketing in Sub-Sahara Africa is growing steadily, driven largely by rapid changes in socio-economic and demographic characteristics of consumers in this market. The growing appetite of multinational enterprises to explore new growth opportunities on this continent and the increasing intra-Africa cross-border transactions is driving unique approaches to international marketing that are predicated on using non-traditional means to produce, communicate and distribute products and services. Research limitations/implications:While the international marketing opportunities and challenges discussed in this article are not exhaustive, the paper highlights important research themes that need consideration regarding international marketing research in Sub-Saharan Africa.Originality/value: This introductory article emphasizes the unique international business landscape in Sub-Saharan Africa and discusses its international marketing strategy implications. The article further draws attention to a number of unanswered research questions that require additional research, and thus bring Sub-Saharan Africa to international marketing scholarly enquiry.

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Section: Conclusion and Future Research Opportunitiesmentioning

confidence: 99%

Africa rising in an emerging world: an international marketing perspective

Amankwah‐Amoah

Boso

Debrah

2018

IMR

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“…Firms demanding higher skills tend to pay higher wages, that is, the impact of labor costs on FDI could be positive. In fact, many studies such as Noorbakhsh, Paloni, and Yousef (2001) and Cleeve, Debrah, and Yiheyis (2015) found that the availability of human capital will stimulate FDI. Similarly, the effect of openness to trade is not straightforward.…”

Section: Locational Decisions Of Multinational Firmsmentioning

confidence: 99%

Do regional trade agreements stimulate FDI? Evidence for the Agadir, MERCOSUR and AFTA regions

Cherif

Dreger

2018

Review Development Economics

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The integration of emerging markets into the global economy is heavily promoted by foreign direct investment (FDI) inflows. Among the factors explaining the location of FDI, regional trade agreements (RTAs) can be relevant for emerging markets, as they can promote economic integration and increase the attractiveness of the region for foreign investors. This paper investigates the impact of South–South trade agreements on the FDI decision of multinationals, where the Agadir, mercado comun del sur (MERCOSUR), and ASEAN free trade area (AFTA) agreements are considered. Three panels of countries are defined, where the members joined a specific agreement or not. Non‐Gulf Arab states are compared to better performing regions in Latin America and Southern and Eastern Asia. The analysis provides evidence that openness to foreign trade and financial markets are among the main catalysts to attract FDI, provided that business‐friendly institutions exist in the host country. Other variables, like the size of the industrial sector, urbanization rates, and external debt appear to be important in some cases. The integration of China into the world economy is a specific trigger for FDI to Asian destinations. Since RTAs influence the market size by reducing barriers to trade, their impact operates via GDP growth and openness. Gains from the agreement are striking for Latin America and Asia, but not for Arab states. To attract more FDI, business‐friendly institutional reforms and mechanisms to support new firm foundation should be implemented in this region.

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“…It is also considered a very important factor for an economy and it helps to provide a highly skilled and innovative labor force that can utilize limited resources with efficiency, which increases the per capita income [17,18]. An efficient human capital also attracts FDI, which stimulates economic growth [19,20].Endogenous growth theory indicates that economic growth is the first and primary result of internal forces. In addition, the theory confirms the supremacy of knowledge, innovation, and human capital and their contribution to economic growth.…”

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confidence: 99%

Impact of Trade Openness and Human Capital on Economic Growth: A Comparative Investigation of Asian Countries

et al. 2020

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The aim of this study is to analyze the impact of trade openness and human capital on economic growth in 19 Asian countries from 1985 to 2017. We selected two geographically distributed regions (Western and Southern Asia) based on difference in their GDP per capita. We applied the unit root tests to examine the level of stationarity and found that all variables were integrated at first difference. Kao and Fisher cointegration tests were employed and the results revealed the presence of a long-run relationship. We applied fully modified ordinary least square (FMOLS) and dynamic ordinary least square (DOLS) models to check the magnitude of the long-run coefficients among trade openness, human capital and economic growth. To investigate the direction of causality, we used a Dumitrescu and Hurlin (DH) causality test. The results indicated that trade openness and human capital have a significant and positive relationship while labor force participation has a negative effect on economic growth in Southern Asia, and in the case of Western Asia, the impact is positive. Foreign direct investment (FDI) has a negative and significant impact on GDP per capita (GDPPC) in Western Asia while it is positive and significant in Southern Asia; Total population (TPOP) has a negative impact on GDPPC in both regions. Furthermore, human capital has a positive and significant impact on trade openness in both panels. Meanwhile, labor force participation (LFP) has a positive and significant impact on trade openness in Southern Asia and a negative impact in the case of Western Asia. Trade openness and economic growth have bidirectional causality in Western Asia and unidirectional causality in Southern Asia. It also shows that human capital and economic growth have unidirectional causality in both regions. promotes growth in several ways. It increases capital formulation and expands markets through an increase in investment [4,5]. It creates enormous benefits to the country's industrial sectors through developing new methods of production and increases the level of employment by creating more job opportunities, and may lead to poverty reduction [6]. There are three tools to measure the ratio of trade openness: one of them is the ratio of total trade volume (import and export) to GDP [7]; the second is the ratio of import and export to total population [8], and finally it can be calculated on the basis of tariff rates. In the current economic scenario, no country can develop successfully without trade openness, investment, and the migration of people. Published literature explored the positive impact of labor productivity on trade openness [9,10]. Trade openness and FDI bring technological transformation in an economy and also help to enhance the human capital of that particular economy [11].Human capital is also observed as a fundamental source of economic growth [12]. It enhances the total productivity level and potential earnings of the labor force [13]. Human capital is also estimated by skills, qualification, ability to create new produ...

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Human Capital and FDI Inflow: An Assessment of the African Case

Cited by 128 publications

References 50 publications

Africa rising in an emerging world: an international marketing perspective

Africa rising in an emerging world: an international marketing perspective

Do regional trade agreements stimulate FDI? Evidence for the Agadir, MERCOSUR and AFTA regions

Impact of Trade Openness and Human Capital on Economic Growth: A Comparative Investigation of Asian Countries

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