The Impact of Inflow Foreign Direct Investment on the Local Human Capital Efficiency with the Role of Financial Deepening as Mediator: A Case of United Arab Emirates
DOI:
https://doi.org/10.47672/aje.1280Keywords:
Inflow foreign direct investment, local human capital efficiency, financial deepening.Abstract
Purpose: This research determines the impact of inflow foreign direct investment inflow foreign direct investment on the expanded concept of social and economic progress in the UAE, such as local human capital efficiency and financial deepening, which needs more clarification, while most of the studies focus on human capital in general.
Methodology: This study used a questionnaire based survey on a selected sample and used the SmartPLS 4 to analyze the data and conclude the results. With the help of quantitative techniques this data was collected from a sample of 8001 selected employees representing the DUBAI population. Only 376 were taken from those who had working experience in foreign companies in the UAE.
Findings: The results show that the inflow foreign direct investment has a significant positive relationship with the local human capital efficiency in the UAE. The role of the mediator in this study was significant and partial mediation with inflow foreign direct investment.
Recommendation: The most important question is about the availability of working in foreign companies. Also, the author mentioned that there is a gap in the human capital development study, and it has been recommended for future study.
Downloads
References
Alalshiekh, A., 2018. The impact of inward FDI on the management of human capital development in developing countries: Lessons from Saudi Arabia (Doctoral dissertation, Brunel University London).
Allan, S., 2010. EBOOK: News Culture. McGraw-Hill Education (UK).
Barry, F., & O’Mahony, C. (2017). Regime change in 1950s Ireland: The new export-oriented foreign investment strategy. Irish Economic and Social History, 44 (1), 46–65.
Bryman, A., 2011. Research methods in the study of leadership. The SAGE handbook of leadership, pp.15-28.
Dutta, N. and Roy, S., 2011. Foreign direct investment, financial development and political risks. The Journal of Developing Areas, pp.303-327.
Goldin, C.D., 2016. Human capital.
Foster-McGregor, N., Poeschl, J. and Stehrer, R., 2016. Offshoring and the elasticity of labour demand. Open Economies Review, 27(3), pp.515-540.
Gómez, M.G.P., 2019. Credit constraints, firm investment and employment: Evidence from survey data. Journal of Banking & Finance, 99, pp.121-141.
Globerman, S./ Shapiro, D. M., The Impact of Government Policies on Foreign Direct Investment: The Canadian Experience, Journal of International Business Studies, 30,3, 1999, pp. 513–532.
Habibi, F. and Sharif Karimi, M., 2017. Foreign direct investment and economic growth: evidence from Iran and GCC. Iranian Economic Review, 21(3), pp.601-620.
Hale, G. and Xu, M., 2016. FDI effects on the labor market of host countries. 2016-25.
Hughes, T.J., Scovazzi, G. and Tezduyar, T.E., 2010. Stabilized methods for compressible flows. Journal of Scientific Computing, 43(3), pp.343-368.
K. Froot and J. Stein, “Exchange rates and foreign direct investment: an imperfect capital markets approach,” Quarterly Journal of Economics, vol. 106, no. 4, pp. 1191–1217, 1991.
Liu, H., Islam, M.A., Khan, M.A., Hossain, M.I. and Pervaiz, K., 2020. Does financial deepening attract foreign direct investment? Fresh evidence from panel threshold analysis. Research in International Business and Finance, 53, p.101198.
Mina, W., 2020. Do GCC market-oriented labor policies encourage inward FDI flows?. Research in International Business and Finance, 51, p.101092.
Salike, N., 2016. Role of human capital on regional distribution of FDI in China: New evidences. China Economic Review, 37, pp.66-84.
Saunders, M., Lewis, P. and Thornhill, A., 2009. Research methods for business students. Pearson education.
Tsaurai, K., 2018. FDI-led financial development hypothesis in emerging markets: the role of human capital development. International Journal of Education Economics and Development, 9(2), pp.109-123.
Van den Berg, M., Birnbaum, L.S., Denison, M., De Vito, M., Farland, W., Feeley, M., Fiedler, H., Hakansson, H., Hanberg, A., Haws, L. and Rose, M., 2006. The 2005 World Health Organization reevaluation of human and mammalian toxic equivalency factors for dioxins and dioxin-like compounds. Toxicological sciences, 93(2), pp.223-241.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2022 Mohamed Nabil Shamsan, Siti Aida Samikon
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution (CC-BY) 4.0 License that allows others to share the work with an acknowledgment of the work’s authorship and initial publication in this journal.
