Authors: Konstantina Louloudi, Constantina Kottaridi

Title: FDI and Human Capital: Gender Educational Effects in European Union

Abstract

The present paper is a systematic analysis of the relationship between gender educational disparities and inward FDI in “older” (Western European Union countries, EU-15) and “newer” (Central Eastern European Union countries, EU-13) EU countries in order to detect potential differentiations between them. Since the impact of gender related education disparities on inward FDI is theoretically ambiguous, the results of empirical investigation merit special attention. We examine various gender related human capital measures so as to capture the complicated nature of human capital and education concerning level and type with respect to gender. Using panel data estimations, we conclude that the reduction of gender educational gaps in both sub-regions facilitates the absorption of inward FDI. Policymakers should enhance gender equality in vocational education in older EU members while attention should be given in gender equality in theoretically oriented programmes in the newer ones.