Human Capital, Political Instability, Foreign Direct Investment, Infrastructure and Economic Growth: Heterogeneous Causal Linkages

Abstract

This study examines the heterogeneous causal relationship between human capital, political instability, foreign direct investment, infrastructure and economic growth for 87 global economies. This study used the dynamic panel GMM regression to examine the heterogeneous causal relationship among them from 1984 to 2019. The results confirmed that there exists a heterogenous causal relationship among these indicators, and the findings have significant implications for economic development by political stability, FDI, human capital and infrastructure development because policymakers should focus on creating a situation that boosts the economic growth by focusing this heterogeneous causal relationship between human capital, political instability, foreign direct investment, infrastructure, and economic growth in a comprehensive and integrated manner.