Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/303576 
Year of Publication: 
2022
Citation: 
[Journal:] Cogent Economics & Finance [ISSN:] 2332-2039 [Volume:] 10 [Issue:] 1 [Article No.:] 2028976 [Year:] 2022 [Pages:] 1-36
Publisher: 
Taylor & Francis, Abingdon
Abstract: 
This paper provides evidence on the moderating effects of institutions on the marginal effects of human capital, financial development, and macroeconomic policies on foreign direct investment (FDI) inflows, based on large panel data of 124 developing countries-spanning from 2002 to 2018-and generalised method of moments (GMM) estimators. The findings suggest that only financial development has a positive and significant direct effect on FDI inflows to developing countries. Importantly, improving the quality of institutions moderates the marginal effect of human capital on FDI inflows. Drawing on these findings, policymakers in developing countries are advised to undertake a set of reforms to upgrade the quality of institutions, improve financial institutions and markets, and scale up investments in human capital.
Subjects: 
Human capital
financial development
macroeconomic policies
institutions
FDI
GMM estimators
developing countries
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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