Impact of human capital on FDI in Morocco's industrial sector: an econometric analysis

Abstract In a context of increasing globalization and international competition, the attraction of foreign direct investment (FDI) is of crucial importance in fostering economic growth and accelerating the industrialization process. This article analyzes the influence of human capital on the attractiveness of FDI in the Moroccan industrial sector. Focusing on education, health and unemployment, the study explores how the quality of human capital affects investment decisions. Using the Vector Autoregression (VAR) model, we assess the role of human capital as a strategic lever for strengthening the competitiveness of Morocco's industrial sector. The time series of the study are based on annual data covering the period from 1990 to 2023.The results of this research reveal that education, unemployment and trade openness have a positive impact on FDI, while health expenditures and gross fixed capital formation have a negative impact on FDI attractiveness. The novelty of our research is its focus on Morocco's industrial sector, a key driver of economic growth that has been overlooked in studies on the impact of human capital on FDI. Keywords : Human capital, Foreign direct investment, FDI, Industrial sector, Vector autoregression, VAR.