Άμεσες ξένες επενδύσεις και ανθρώπινο κεφάλαιο: επιδράσεις κατά φύλο και διάχυση γνώσης
FDI and human capital: empirical evidence of gender effects and education spillovers
KeywordsFDI ; Skills ; European Union ; STEM ; Culture ; Human capital ; Gender education ; Females' education
This series of papers tries to reflect the determinants of inward FDI by placing particular emphasis on human capital, gender disparities in terms of education and even more so on the role of females’ education in science fields. The present dissertation consists of three independent essays, of which the first one is devoted completely to the study of human capital, skills and competencies, the second to gender disparities effects in terms of different types and levels of education, and the third to how females’ education and culture shape the FDI inflows taking also into account the economic, human capital and institutional environment. The first essay, which is presented in Chapter 2, evaluates the role of human capital in attracting inward foreign direct investment (FDI) in EU countries. Specifically, it provides a comprehensive investigation on the role of human capital, skills and competencies in the location of inward FDI by comparing Western (EU15) and Central and Eastern (CEE) European Union (EU) members. We go beyond existing studies by examining an extensive list of traditional and newly advanced measures capturing human capital, even differing schooling systems as well as skills and competencies. We assess, for the first time in the FDI literature, vocational vs. general education, following the Vocational and Educational Programs of the EU as well as quality human capital aspects as captured by international scores. Results indicate a major difference regarding theoretical and vocational education programs for both sub-regions; in addition, a major difference is obtained for particular qualifications in international scores. There is evidence for potential internal and external inefficiency in education in CEE countries in contrast to the EU15, which calls for re-evaluation and restructuring in their education system towards more efficient use of funds; this would earn investors’ trust and meet labor markets’ demands, thus stimulate more and higher value added foreign investments. Results also point to useful implications for managers who should watch closely education reforms. The second essay, presented in Chapter 3, is a systematic analysis of the relationship between gender educational disparities and inward FDI in Western and CEE EU countries to detect potential differentiations between them. We examine various gender related human capital measures so as to capture the complicated nature of human capital and education concerning level and type with respect to gender to see which is more important in the eyes of foreign investors. Using panel data estimations, we conclude that the reduction of gender educational gaps in both sub-regions facilitates the absorption of inward FDI. Policymakers should enhance gender equality in vocational education in Western EU members while attention should be given in gender equality in theoretically oriented programmes in the CEE EU ones. The third essay (Chapter 4) examines how national culture, religion, and females’ education, parts of institutions, shape the FDI inflows in a panel of European Union countries for the period 2000-2012. In terms of education, we focus on tertiary level and Science, Technology, Engineering and Mathematics (STEM) fields; the latter is vital in the modern labor market. However, the females’ graduate rate in EU is very low. The results reveal that not only tertiary education graduates but even more so tertiary graduates with STEM skills are important in attracting FDI. Moreover, the presence of high female STEM labor force is particularly an attracting feature for FDI. Finally, institutions, culture and the economic environment are important determinants in attracting FDI. Finally, Chapter 5, presents the concluding remarks of all essays and highlights some policy implications of how human capital, gender education and particularly females’ education stimulate FDI and where should policymakers pay most attention.