A Framework Of The Relationship Between The Foreign Investment Participant And Its Effect On Managing The Local Human Capital Efficiency With The Role Of Financial Deepening As A Mediator

Abstract

The purpose of this study and present a framework that is to examine the impact of foreign investment, including inflow foreign direct investment (IFDI), multinational foreign enterprise (FMNE), and foreign labor (FL), on managing local human capital efficiency (LHCE) and financial deepening in the United Arab Emirates (UAE). A quantitative methodological approach using a survey method was employed to evaluate the effects of foreign investment on LHCE from a theoretical perspective. The study found that IFDI and FMNE have a significant positive relationship with LHCE in the UAE, while FL has a negative effect. Financial deepening was found to partially mediate the relationship between IFDI and FMNE and fully mediate the relationship between FL and LHCE. These results suggest that foreign investment can play a role in managing local human capital efficiency and financial deepening in the UAE.