The Impact of the Quality of Human Resources On attracting Foreign Direct Investment A Case Study of the South East Asian countries and Iran

Subject Areas : Journal of Investment Knowledge

Azam Asadnezhad ¹ , Taghi Torabi ² , Reza Radfar ³

1 - Master of Technology Management
2 - Associate Professor of Economics
3 - Associate Professor of Industrial Management

Received: 2016-03-13 Accepted : 2016-05-05 Published : 2016-09-22

Keywords: foreign direct investment, Human Resource, transnational companies,

Abstract :

Foreign direct investment (FDI) is of the major factors in the field of increasing international economic interactions. Utilizing this type of investment will lead into technology improvement, management skill development in order to improve the quality of domestic work labor, increasing domestic production standards, expanding export markets and transition into market economy. Hence, government plays a major role in order to make domestic industries and entrepreneurs to attract FDI (for capital or technology) This study evaluates the impact of the quality of human resources along with other factors such as currency exchange rates, openness, market size and economic stability on attracting foreign direct investment in developing countries of the South-East Asia (Thailand, South Korea, Singapore, Malaysia, Indonesia and China) during 1995 to 2012 And Iran from 1980 to 2012.hence, the research model has been selected by implementing data panel for selected countries of South-East Asia. Moreover, time series has been used, in order to model the data for Iran to compare the results with the south East Asian countries models. The results show that in Iran and other developing countries, attracting FDI has direct relation with quality of human resource. Hence, it is necessary for the decision makers of the country to increase their focus on the development of human resource specially improvement of education and training level and scope in different age groups.

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