FDI and economic vulnerability: The role of local human capital


Authors

  • Nguyen Thi Huyen Trang Bac Ninh Provincial Ho Chi Minh Communist Youth Union
  • Luu Ngoc Hiep VNU University of Economics and Business
  • Dang Anh Hao Vietnam Bank for Industry and Trade Securities Joint Stock Company
DOI: https://doi.org/10.57110/vnu-jeb.v4i4.324

Keywords:

FDI, economic vulnerability, local human capital

Abstract

This study explores how the impact of Foreign Direct Investment (FDI) on economic vulnerability is influenced by the level of local human capital. Using global data from 2000 to 2018, our analysis finds that higher levels of local human capital are associated with lower economic vulnerability when FDI inflows increase. This indicates that a more educated and skilled workforce enhances a country’s ability to effectively utilize FDI, thereby reducing susceptibility to external economic shocks. However, the impact of human capital varies over time. The effect is not significant from 2000 to 2009, but becomes pronounced from 2010 to 2018. This suggests that the role of human capital in reducing economic vulnerability in the context of FDI has become more important in recent years.

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Published

25-08-2024

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How to Cite

Nguyen Thi Huyen Trang, Luu Ngoc Hiep, & Dang Anh Hao. (2024). FDI and economic vulnerability: The role of local human capital. VNU University of Economics and Business, 4(4), 24. https://doi.org/10.57110/vnu-jeb.v4i4.324

Issue

Vol. 4 No. 4

Section

Original Articles

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Copyright (c) 2024 Luu Ngoc Hiep, Nguyen Thi Huyen Trang, Dang Anh Hao

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This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

by VNU Journal of Economics and Business