How Does Human Capital Impact the FDI's Effects on GDP Growth?

This study examines whether foreign direct investment (FDI) improves GDP growth and how this impact changes depending on a country's human capital level. Using cross-country panel data from 2000-2023, this study investigates whether countries with higher human development benefit more from FDI. A panel regression model with country and year fixed effects and an interaction term between FDI and the Human Development Index (HDI) is estimated.

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