Governments are under pressure to cut their spending, including on education, but do they risk putting off investors if they do so? By Viola Caon, Investment Monitor
FDI and education expenditure
A good education system is more likely to produce the talent pool that multinational companies are looking for when they go through their foreign direct investment (FDI) site-selection process.
Cuts to government spending in this sector are likely to have an impact on countries’ FDI attractiveness, although this is more likely to happen in the long term.
Investment Monitor’s data team has analysed the OECD countries’ education expenditure as a proportion of GDP in relation to the number of new FDI projects attracted by each country in the period between 2019 and 2021.
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