Does Foreign Direct Investments Contribute to Employment? Empirical Approach for The Commonwealth of Independent States
Abstract
The literature regarding the effect of foreign direct investments (FDI)
on employment especially indirectly (e.g. wage level, skill based labor
demand) for individual countries and country groups has revealed
contradictory results so far. This paper aims to analyze the effect of
FDI on employment by macro-level perspective for the Commonwealth of Independent States (CIS) which has not been analyzed so far
and has still vital importance for those countries like other transition
economies and developing countries in the world. In this context, by
utilizing the panel data of nine CIS countries over the period 1995-
2013, we explored the nexus between FDI and employment by performing Pedroni’s (1999, 2004) and Kao’s (1999) cointegration tests.
Findings of the paper do indicate not only the existence of a long-run
positive relationship between FDI and employment, but also the limited employment-generating effect of FDI.
Keywords
References
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Details
Primary Language
English
Subjects
-
Journal Section
Research Article
Publication Date
October 31, 2017
Submission Date
November 26, 2015
Acceptance Date
-
Published in Issue
Year 2017 Number: 83