Human Capital, Gender Equality and Foreign Direct Investment: Evidence from OECD Countries

The human capital sector of a country plays a vital role in qualitative direct investments. This study examines the degree to which the mean performance on the mathematics and reading scale, as well as the Gini coefficient on average years of schooling, as distinguished in our panel between the two genders, can influence inward foreign direct investment (FDI). We test these education variables for the period 1960-2010 by placing emphasis on OECD countries. Our regression results suggest that all variables are positively associated with (FDI) flows. Also, there exists the same degree of influence between genders, and our results can provide useful insights for governments and policymakers by promoting gender equality.