The Effects of FDI on Human Capital Stock in Central Asian Turkic Republics

Abstract

Foreign direct investment contributes to the education level of a country through many channels. On the other hand, educated labor increases foreign direct investment inflows. The subject of this paper is to investigate the contribution of foreign direct investment to the level of education in Central Asian Turkic Republics. In this study, the contribution of FDI to level of education is examined by Panel OLS methodology for 1999-2011 periods in Azerbaijan, Uzbekistan, Kazakhstan and Kyrgyz Republic, except Turkmenistan. As a result of the study, there is not a significant relationship between FDI stock and level of education which is used as an indicator for human capital investment.