TY - JOUR ID - 65359 TI - The Impact of Human Capital on FDI with New Evidence from Bootstrap Panel Granger Causality Analysis JO - Iranian Economic Review JA - IER LA - en SN - 1026-6542 AU - Sadeghi, Pegah AU - Shahrestani, Hamid AU - Hojhabr Kiani, Kambiz AU - Torabi, Taghi AD - Department of Economic, Science and Research branch, Islamic Azad University, Tehran, Iran Y1 - 2018 PY - 2018 VL - 22 IS - 1 SP - 215 EP - 233 KW - Keywords: Foreign Direct Investment (FDI) KW - Human capital KW - Seemingly Unrelated Equation System KW - Bootstrapping KW - OIC Countries. JEL Classification: C21 KW - F2 KW - F21 DO - 10.22059/ier.2018.65359 N2 - T his study evaluates the causality relationship between human capital and foreign direct investment inflow in twenty-six OIC (the Organization of Islamic Cooperation) countries over the period 1970–2014. We employed the panel Granger non-causality testing approach of Kònya (2006) that is based on seemingly unrelated regression (SUR) systems, and Wald tests with country specific bootstrap critical values. The approach allows one to test for Granger non-causality on each member of panel, separately by taking into account the cross-sectional dependency and slope heterogeneity among countries investigated simultaneously. We found that the hypothesis of Granger non-causality from human capital to foreign direct investment (FDI) was rejected for more than half of the sample countries, mainly among African states. In addition, the effect magnitude of human capital on FDI varies among the states significantly.   UR - https://ier.ut.ac.ir/article_65359.html L1 - https://ier.ut.ac.ir/article_65359_939834ab0c9385d72bda3dc6b03fbcee.pdf ER -