Foreign Direct Investment, Financial Development, HumanCapital and Labor Productivity: A Global Perspective

Sundus Javed et al.

Lahore Journal of Economics2025https://doi.org/10.35536/lje.2025.v30.i1.a5article
ABDC C
Weight
0.50

What the paper says

The study examines the impact of foreign direct investment, human capital, and financial development on labor productivity, utilizing data from 2000 to 2019 and panel data from 180 economies. The estimation technique used in the study is GMM, which helps to solve the problems of endogeneity and unobserved heterogeneity. The findings indicate that foreign direct investment, human capital, and financial development have a positive and significant relationship with labor productivity. The square term of human capital also shows a positive relationship with labor productivity, indicating increasing returns. This study contributes to the literature by examining the roles of structural and financial factors using robust techniques. Furthermore, the study’s results offer important policy recommendations, suggesting that the government should invest in projects to develop education and financial infrastructure to achieve high productivity gains.

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https://doi.org/https://doi.org/10.35536/lje.2025.v30.i1.a5

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@article{sundus2025,
  title        = {{Foreign Direct Investment, Financial Development, HumanCapital and Labor Productivity: A Global Perspective}},
  author       = {Sundus Javed et al.},
  journal      = {Lahore Journal of Economics},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.35536/lje.2025.v30.i1.a5},
}

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

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