In a global sphere characterized by the interdependence between capital flows, capital markets of the developing countries open up more foreign direct investment flows through host country development such as human capital development and financial system development. One of the sources of economic growth in the developing countries is the implementation of macroeconomic policies, such as the attractiveness of foreign direct investment, the development human capital, the development institutions and the improvement of the education system. Following the estimation of panel data from the Arab Maghreb countries from 1995 to 2019 through the generalized method of moments, this paper shows the positive and significant effect of foreign direct investment and human capital, and the importance of the interaction in strengthening economic growth.

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Keywords

FDI, Humain Capital, Economic Growth, GMM