Research Article

Does Foreign Direct Investments Contribute to Employment? Empirical Approach for The Commonwealth of Independent States

Number: 83 October 31, 2017
TR EN

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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  2. Ajaga, Elias and Peter Nunnenkamp (2008). “Inward FDI, Value Added and Employment in US States: A Panel Cointegration Approach”. Kiel Institute Working Papers 1420: 1-22.
  3. Banga, Rashmi (2005). “Impact of Liberalization on Wages and Employment in Indian Manufacturing Industries”. Indian Council for Research on International Economic Relations (ICRIER) Working Papers 153: 1-30.
  4. Braunstein, Elissa and Gerald Epstein (2002). “Bargaining Power and Foreign Direct Investment in China: Can 1.3 Billion Consumers Tame the Multinationals?”. Political Economy Research Institute Working Paper 45: 1-41.
  5. Breitung, Jörg (2000). “The Local Power of Some Unit Root Tests for Panel Data”. Advances in Econometrics 15: 161-177.
  6. Brincikova, Zuzana and Darmo Lubomir (2014). “The Impact of FDI Inflow on Employment in V4 Countries”. European Scientific Journal 1: 245-252.
  7. Dickey, A., David and A. Wayne Fuller (1979). “Distribution of the Estimators for Autoregressive Time Series with a Unit Root”. Journal of the American Statistical Association 74 (366): 427-431.
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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

APA
Çolak, O., & Alakbarov, N. (2017). Does Foreign Direct Investments Contribute to Employment? Empirical Approach for The Commonwealth of Independent States. Bilig, 83, 147-169. https://izlik.org/JA43SZ82CN
AMA
1.Çolak O, Alakbarov N. Does Foreign Direct Investments Contribute to Employment? Empirical Approach for The Commonwealth of Independent States. Bilig. 2017;(83):147-169. https://izlik.org/JA43SZ82CN
Chicago
Çolak, Olcay, and Naib Alakbarov. 2017. “Does Foreign Direct Investments Contribute to Employment? Empirical Approach for The Commonwealth of Independent States”. Bilig, nos. 83: 147-69. https://izlik.org/JA43SZ82CN.
EndNote
Çolak O, Alakbarov N (October 1, 2017) Does Foreign Direct Investments Contribute to Employment? Empirical Approach for The Commonwealth of Independent States. Bilig 83 147–169.
IEEE
[1]O. Çolak and N. Alakbarov, “Does Foreign Direct Investments Contribute to Employment? Empirical Approach for The Commonwealth of Independent States”, Bilig, no. 83, pp. 147–169, Oct. 2017, [Online]. Available: https://izlik.org/JA43SZ82CN
ISNAD
Çolak, Olcay - Alakbarov, Naib. “Does Foreign Direct Investments Contribute to Employment? Empirical Approach for The Commonwealth of Independent States”. Bilig. 83 (October 1, 2017): 147-169. https://izlik.org/JA43SZ82CN.
JAMA
1.Çolak O, Alakbarov N. Does Foreign Direct Investments Contribute to Employment? Empirical Approach for The Commonwealth of Independent States. Bilig. 2017;:147–169.
MLA
Çolak, Olcay, and Naib Alakbarov. “Does Foreign Direct Investments Contribute to Employment? Empirical Approach for The Commonwealth of Independent States”. Bilig, no. 83, Oct. 2017, pp. 147-69, https://izlik.org/JA43SZ82CN.
Vancouver
1.Olcay Çolak, Naib Alakbarov. Does Foreign Direct Investments Contribute to Employment? Empirical Approach for The Commonwealth of Independent States. Bilig [Internet]. 2017 Oct. 1;(83):147-69. Available from: https://izlik.org/JA43SZ82CN

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