Foreign Direct Investment and Unemployment: VAR Analysis for Poland in the Years 1995-2009
AbstractThe paper is devoted to the influence of foreign direct investment on labour markets. The interdependencies between FDI and unemployment were econometrically analyzed in Poland. In the research the VAR methodology was utilized based on aggregate quarterly data. The VAR analysis for the period 1995-2009 have proved interdependencies between FDI and employment in Poland. FDI impulse leads to decreasing of unemployment rate. However, the positive influence of FDI on Polish labour market tend be rather short term. It can suggest that government policies designed for encouraging FDI investment should be reformed in order to make conditions for positive long term influence of foreign capital inflow on Polish labour market.
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Bibliographic InfoArticle provided by European Research Studies Journal in its journal European Research Studies Journal.
Volume (Year): XIV (2011)
Issue (Month): 1 ()
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FDI; Unemployment; Vector Autoregressive Modelling;
Find related papers by JEL classification:
- C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models
- E24 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
- F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
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