This study aims to investigate the interplay between education and local roads on Foreign Direct Investment (FDI) in the Philippines, using economic growth as an instrument. The study used the quantitative research design applying both descriptive and inferential statistics. A combination of Two Stage Least Square Regression Model and three approaches in Panel Regression Model such as Pooled Least Square, Fixed Effect Model, and Random Effect Model were utilized in order to study the effects of education and local roads on foreign direct investment of the Philippines. Based on Fixed Effect regression results, higher education graduates and local road investments, as conditioned by economic growth, were significant factors in order to increase the foreign direct investment in the Philippines. Accordingly, a unit increase in higher education graduates, as conditioned by economic growth, leads to 8.758 unit increases in the foreign direct investment. While, a unit increased in local road investments, as conditioned by economic growth, leads to a 0.002 decrease in foreign direct investment. The regression results of the study suggest that the Foreign Direct Investment in the regions such as CAR, I, II, IV-B, V, VIII, IX, X, XI, XII, XIII, and ARMM are higher compared to Region IV-A.

Abstract
1. Introduction
2. Literature Review
    2.1. Theoretical Foundations
    2.2. Impact of Education on Economic Growth
    2.3. Impact of Road Infrastructure on EconomicGrowth
    2.4. Impact of Economic Growth on ForeignDirect Investment
3. Methodology
    3.1. The Regression Model
4. Results and Discussion
    4.1.Descriptive Statistics
    4.2. Regression Analysis
    4.3. Fixed Effect Model
    4.4. Random Effect Model
5. Conclusions and Recommendations
References

• Ricardo Laurio DIZON(Graduate School, Polytechnic University of the Philippines) Corresponding Author
• Zita Ann Escabarte CRUZ(Department of Budget and Management)