Education systems and foreign direct investment: does external efficiency matter?
This paper examines the effect of the efficiency of the education system on Foreign Direct Investment (FDI). First, it applies a frontier-based measure as a proxy of the ability of countries to optimally convert the average years of schooling into income for individuals. Second, it shows the relatio...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2020-01-01
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| Series: | Journal of Applied Economics |
| Subjects: | |
| Online Access: | http://dx.doi.org/10.1080/15140326.2020.1797337 |
| _version_ | 1829522589671751680 |
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| author | Élisé Wendlassida Miningou Sampawende Jules Tapsoba |
| author_facet | Élisé Wendlassida Miningou Sampawende Jules Tapsoba |
| author_sort | Élisé Wendlassida Miningou |
| collection | DOAJ |
| description | This paper examines the effect of the efficiency of the education system on Foreign Direct Investment (FDI). First, it applies a frontier-based measure as a proxy of the ability of countries to optimally convert the average years of schooling into income for individuals. Second, it shows the relationship between the external efficiency of the education system and FDI inflows. The results show that the efficiency level varies across regions and countries and appears to be driven by higher education and secondary vocational education. Similarly to other studies in the literature, there is no significant relationship between the average years of schooling and FDI inflows. However, the external efficiency of the education system is important for FDI inflows. Improving the external efficiency of the education system can play a role in attracting FDI especially in non-resource rich countries, non-landlocked countries and countries in the low and medium human development groups. |
| first_indexed | 2024-12-16T15:35:11Z |
| format | Article |
| id | doaj.art-08e71eb477ff4586adb6c86b394f3472 |
| institution | Directory Open Access Journal |
| issn | 1514-0326 1667-6726 |
| language | English |
| last_indexed | 2024-12-16T15:35:11Z |
| publishDate | 2020-01-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Journal of Applied Economics |
| spelling | doaj.art-08e71eb477ff4586adb6c86b394f34722022-12-21T22:26:12ZengTaylor & Francis GroupJournal of Applied Economics1514-03261667-67262020-01-0123158359910.1080/15140326.2020.17973371797337Education systems and foreign direct investment: does external efficiency matter?Élisé Wendlassida Miningou0Sampawende Jules Tapsoba1World Bank, Human Development Practice GroupInternational Monetary FundThis paper examines the effect of the efficiency of the education system on Foreign Direct Investment (FDI). First, it applies a frontier-based measure as a proxy of the ability of countries to optimally convert the average years of schooling into income for individuals. Second, it shows the relationship between the external efficiency of the education system and FDI inflows. The results show that the efficiency level varies across regions and countries and appears to be driven by higher education and secondary vocational education. Similarly to other studies in the literature, there is no significant relationship between the average years of schooling and FDI inflows. However, the external efficiency of the education system is important for FDI inflows. Improving the external efficiency of the education system can play a role in attracting FDI especially in non-resource rich countries, non-landlocked countries and countries in the low and medium human development groups.http://dx.doi.org/10.1080/15140326.2020.1797337fdihuman capitaleducation systemexternal |
| spellingShingle | Élisé Wendlassida Miningou Sampawende Jules Tapsoba Education systems and foreign direct investment: does external efficiency matter? Journal of Applied Economics fdi human capital education system external |
| title | Education systems and foreign direct investment: does external efficiency matter? |
| title_full | Education systems and foreign direct investment: does external efficiency matter? |
| title_fullStr | Education systems and foreign direct investment: does external efficiency matter? |
| title_full_unstemmed | Education systems and foreign direct investment: does external efficiency matter? |
| title_short | Education systems and foreign direct investment: does external efficiency matter? |
| title_sort | education systems and foreign direct investment does external efficiency matter |
| topic | fdi human capital education system external |
| url | http://dx.doi.org/10.1080/15140326.2020.1797337 |
| work_keys_str_mv | AT elisewendlassidaminingou educationsystemsandforeigndirectinvestmentdoesexternalefficiencymatter AT sampawendejulestapsoba educationsystemsandforeigndirectinvestmentdoesexternalefficiencymatter |