on economic growth between developed and 69 developing countries in
the period between 1979 and 1989 by cross-country regressions. Results of their
study showed that FDI are an important way of transferring knowledge and
technology considering that they contribute more to economic growth than
domestic investment. Furthermore, FDI will have a greater positive effect on
economic growth the higher the level of educated human capital in the receiving
country is. It can be concluded that education level of human capital is a
necessary precondition for the adoption and implementation of new technologies.