Labor Market Flexibility, Foreign Direct Investment and Growth

Labor Market Flexibility, Foreign Direct Investment and Growth PDF Author: Nurhaiza Nordin
Publisher: LAP Lambert Academic Publishing
ISBN: 9783659458507
Category :
Languages : en
Pages : 100

Get Book Here

Book Description
Foreign direct investment (FDI) has developed rapidly and as a main contribution on economic growth in developing countries. The benefits of FDI to host countries are inward of capital and technology that enhance innovation thereby potentially improving economic growth. The inflows of FDI will be depending on favorable location factors at host country like labor market condition. The labor markets at host countries play an important role to adapt the inflows from FDI. Host country with low levels of employment protection and flexible of labor market are commonly perceived to provide an environment conducive to investment. Our discussion is to examine the role of labor market flexibility in mediating the impact of FDI on economic growth in developing countries. We employ threshold estimation method proposed by Hansen (1999, 2000) on a comprehensive sample period from 2000 to 2010. We finds that countries that group above threshold value of more flexibility of labor market has a positive impact, where this result indicate that labor market flexibility play an important role in mediating FDI on economic growth in developing countries.

Labor Market Flexibility, Foreign Direct Investment and Growth

Labor Market Flexibility, Foreign Direct Investment and Growth PDF Author: Nurhaiza Nordin
Publisher: LAP Lambert Academic Publishing
ISBN: 9783659458507
Category :
Languages : en
Pages : 100

Get Book Here

Book Description
Foreign direct investment (FDI) has developed rapidly and as a main contribution on economic growth in developing countries. The benefits of FDI to host countries are inward of capital and technology that enhance innovation thereby potentially improving economic growth. The inflows of FDI will be depending on favorable location factors at host country like labor market condition. The labor markets at host countries play an important role to adapt the inflows from FDI. Host country with low levels of employment protection and flexible of labor market are commonly perceived to provide an environment conducive to investment. Our discussion is to examine the role of labor market flexibility in mediating the impact of FDI on economic growth in developing countries. We employ threshold estimation method proposed by Hansen (1999, 2000) on a comprehensive sample period from 2000 to 2010. We finds that countries that group above threshold value of more flexibility of labor market has a positive impact, where this result indicate that labor market flexibility play an important role in mediating FDI on economic growth in developing countries.

Labor Market Flexibility and FDI: Evidence for OECD Countries(KIEP Working Paper 16-06)

Labor Market Flexibility and FDI: Evidence for OECD Countries(KIEP Working Paper 16-06) PDF Author: Choi Hyelin
Publisher:
ISBN: 9788932242576
Category :
Languages : en
Pages : 30

Get Book Here

Book Description


Labor Market Flexibility and FDI

Labor Market Flexibility and FDI PDF Author: Hyelin Choi
Publisher:
ISBN:
Category :
Languages : en
Pages :

Get Book Here

Book Description
This paper examines the impact of labor market regulations on FDI and employment and production of the foreign firms using an index on employment protection along with a number of employees and establishments, and production of foreign affiliates provided by the OECD. The empirical results show that strict employment protection discourages initial entry of foreign firms as well as the employment and production of foreign firms. The result is robust to various specifications in which the strictness of the labor market is measured by the unionization rate and severance pay for redundancy dismissal. Therefore, the attention of policymakers should not be limited to tax incentives, cash grants, and relaxation of market regulations but extend also to labor market deregulation and non-wage cost, to attract more foreign firms into their countries.

Labour Market Flexibility and Foreign Direct Investment

Labour Market Flexibility and Foreign Direct Investment PDF Author:
Publisher:
ISBN:
Category : Investments, Foreign
Languages : en
Pages :

Get Book Here

Book Description


The Effect of Labor Market Institutions on FDI Inflows

The Effect of Labor Market Institutions on FDI Inflows PDF Author: Chang-Soo Lee
Publisher: KIEP
ISBN:
Category : Corporations, Foreign
Languages : en
Pages : 66

Get Book Here

Book Description


Labor Market Flexibility and FDI Flows

Labor Market Flexibility and FDI Flows PDF Author: Wasseem Mina
Publisher:
ISBN:
Category :
Languages : en
Pages : 33

Get Book Here

Book Description
In this paper we empirically examine the impact of labor market flexibility on FDI flows to oil-rich GCC and compare it to middle income countries in 2006-2011. We account for potential endogeneity and nonstationarity and adopt system GMM and IV estimation methodologies. Our findings show that in middle income countries overall flexibility increases FDI flows under both system GMM and IV methodologies. In GCC countries overall LMF decreases FDI flows under system GMM methodology. Results also show a positive “GCC region” influence outweighing the negative flexibility influence. Growth potential and infrastructure development matter for both GCC and middle income countries.

Do Foreign Investors Care About Labor Market Regulations?

Do Foreign Investors Care About Labor Market Regulations? PDF Author: Mariana Spartareanu
Publisher:
ISBN:
Category :
Languages : en
Pages :

Get Book Here

Book Description
The authors take a new look at the regulatory determinants of foreign direct investment (FDI) by asking whether labor market flexibility affects FDI flows across 25 Western and Eastern European countries. Their analysis is based on firm level data on new investments during the 1999-2001 period. The authors employ a variety of labor market flexibility measures that capture different aspects of labor laws along with a comprehensive set of controls for business climate characteristics. Indices of labor market regulations reflect the flexibility of individual and collective dismissals, the length of the notice period, and the required severance payment. The results suggest that greater flexibility in the host country's labor market relative to that in the investor's home country is associated with larger FDI inflows, and this effect is found to be stronger in the case of transition economies. The findings indicate that as the labor market flexibility in the host country increases from inflexible (for example, Slovakia) to flexible (for example, Hungary), the volume of investment increases by between 14 and 18 percent. FDI in service sectors appears to be more affected than investments in manufacturing.

Labor Market Flexibility and Unemployment

Labor Market Flexibility and Unemployment PDF Author: Mr.Lorenzo E. Bernal-Verdugo
Publisher: International Monetary Fund
ISBN: 1463948905
Category : Business & Economics
Languages : en
Pages : 28

Get Book Here

Book Description
The aim of this paper is to analyze the relationship between labor market flexibility and unemployment outcomes. Using a panel of 97 countries from 1985 to 2008, the results of the paper suggest that improvements in labor market flexibility have a statistically and significant negative impact on unemployment outcomes (over unemployment, youth unemployment and long-term unemployment). Among the different labor market flexibility indicators analyzed, hiring and firing regulations and hiring costs are found to have the strongest effect.

Jobs on the Move

Jobs on the Move PDF Author: Béla Galgóczi
Publisher: Peter Lang
ISBN: 9789052014487
Category : Business & Economics
Languages : en
Pages : 250

Get Book Here

Book Description
The aim of this book is to explore the complexity of the new forms of international division of labour within the enlarged EU using an analytical approach.

Determinants of Foreign Direct Investment

Determinants of Foreign Direct Investment PDF Author: Mr.James P Walsh
Publisher: International Monetary Fund
ISBN: 1455202215
Category : Business & Economics
Languages : en
Pages : 29

Get Book Here

Book Description
Using a dataset which breaks down FDI flows into primary, secondary and tertiary sector investments and a GMM dynamic approach to address concerns about endogeneity, the paper analyzes various macroeconomic, developmental, and institutional/qualitative determinants of FDI in a sample of emerging market and developed economies. While FDI flows into the primary sector show little dependence on any of these variables, secondary and tertiary sector investments are affected in different ways by countries’ income levels and exchange rate valuation, as well as development indicators such as financial depth and school enrollment, and institutional factors such as judicial independence and labor market flexibility. Finally, we find that the effect of these factors often differs between advanced and emerging economies.