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Human Capital Development Key to Foreign Direct Investment - BIDPA
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A fiscal policy paper on the impact of shocks to human capital development among developing countries published by the Botswana Institute of Development Policy Analysis (BIDPA) has identified human capital improvement as key to attainment of the Millenniu

Publication
 Sunday Standard

Date
  11th July 2014

Press statement

A fiscal policy paper on the impact of shocks to human capital development among developing countries published by the Botswana Institute of Development Policy Analysis (BIDPA) has identified human capital improvement as key to attainment of the Millennium Development Goals (MDGs), productivity as well as competitiveness.

According to Dr. Grace Tabengwa, acting Senior Research Fellow at BIDPA, human capital development is a key factor that can transform developing countries’ growth prospects through efficiency, competiveness and attracting foreign direct investment inflow where expertise of skills is key.

“The dynamics of our model results reveal that high stocks of public debt, beyond the 30-40 percent debt/GDP threshold, depress the effect of human capital on output growth through limiting government expenditure resources available for developing human capital.” Tabengwa said.

The paper, which has been published on the international Journal of Economics and Behavioural Studies, examines the implications of shocks to public debt and government expenditure on the development of human capital and growth within a model that explicitly recognizes the role of fiscal constraints. More details here. (Sunday Standard: July 6-12, 2014).


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