Pioneering work of R. Lucas questioning the capital not going to underdeveloped economies despite the higher rate of returns, generated a discussion which led to a rapid increase in the studies analyzing the main determinants of capital movements. The aim of our study is to contribute to the literature regarding the analyzes of "Lucas Paradox" and to investigate the validity of the paradox in the context of foreign direct investments and of the possible determinants for 47 developing countries selected with reference to World Bank country classification. The findings from panel data analyses support the Paradox and point to the insignificance of differences in the marginal rate of return among countries. Our findings also indicate that the effects of human capital and institutional quality are significant and quite high, supporting the relevant literature.
|Yayımlanma Tarihi||15 Eylül 2020|
|Yayınlandığı Sayı||Yıl 2020, Cilt 1, Sayı 1|