IDEAS home Printed from https://ideas.repec.org/a/ers/journl/vxivy2011i1p3-14.html
   My bibliography  Save this article

Foreign Direct Investment and Unemployment: VAR Analysis for Poland in the Years 1995-2009

Author

Listed:
  • Adam P. Balcerzak
  • Miroslawa Zurek

Abstract

The 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.

Suggested Citation

  • Adam P. Balcerzak & Miroslawa Zurek, 2011. "Foreign Direct Investment and Unemployment: VAR Analysis for Poland in the Years 1995-2009," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 3-14.
    • Handle: RePEc:ers:journl:v:xiv:y:2011:i:1:p:3-14
    as

    Download full text from publisher

    File URL: http://www.ersj.eu/repec/ers/papers/11_1_p1.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Eleftherios Thalassinos, 2008. "Trends and Developments in the European Financial Sector," European Financial and Accounting Journal, Prague University of Economics and Business, vol. 2008(3), pages 44-61.
    2. Nigel Driffield & James Love & Karl Taylor, 2008. "Productivity and Labour Demand Effects of Inward and Outward FDI on UK Industry," Working Papers 2008001, The University of Sheffield, Department of Economics, revised Jan 2008.
    3. Sune Karlsson & Nannan Lundin & Fredrik Sjöholm & Ping He, 2009. "Foreign Firms and Chinese Employment," The World Economy, Wiley Blackwell, vol. 32(1), pages 178-201, January.
    4. Grinols, Earl L, 1991. "Unemployment and Foreign Capital: The Relative Opportunity Costs of Domestic Labour and Welfare," Economica, London School of Economics and Political Science, vol. 58(229), pages 107-121, February.
    5. Fung, Michael Ka-yiu & Zeng, Jinli & Zhu, Lijing, 1999. "Foreign Capital, Urban Unemployment, and Economic Growth," Review of International Economics, Wiley Blackwell, vol. 7(4), pages 651-664, November.
    6. Bénédicte Vidaillet & V. d'Estaintot & P. Abécassis, 2005. "Introduction," Post-Print hal-00287137, HAL.
    7. David Bailey & Nigel Driffield, 2007. "Industrial Policy, FDI and Employment: Still ‘Missing a Strategy’," Journal of Industry, Competition and Trade, Springer, vol. 7(3), pages 189-211, December.
    8. Kostas Axarloglou & Mike Pournarakis, 2007. "Do All Foreign Direct Investment Inflows Benefit the Local Economy?," The World Economy, Wiley Blackwell, vol. 30(3), pages 424-445, March.
    9. Granger, C W J, 1969. "Investigating Causal Relations by Econometric Models and Cross-Spectral Methods," Econometrica, Econometric Society, vol. 37(3), pages 424-438, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chella, Namapsa & Phiri, Andrew, 2017. "Long-run cointegration between foreign direct investment, direct investment and unemployment in South Africa," MPRA Paper 82371, University Library of Munich, Germany.
    2. Ľubomír Darmo & Marcel Novák & Ján Lisý, 2020. "Vzťah medzi prílevom priamych zahraničných investícií a nezamestnanosťou v Slovenskej republike [Relationship Between Foreign Direct Investment Inflow and Unemployment in the Slovak Republic]," Politická ekonomie, Prague University of Economics and Business, vol. 2020(4), pages 443-461.
    3. Mohammad Ibrahim Malawi Alrabba, 2017. "The Determinants of Unemployment Rate in Jordan: A Multivariate Approach," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 9(11), pages 109-117, November.
    4. Emil Adámek & Lucie Rybková, 2015. "Influence of Investment Incentives on Development of Regional Unemployment in the Czech Republic," European Journal of Business Science and Technology, Mendel University in Brno, Faculty of Business and Economics, vol. 1(1), pages 5-14.
    5. Jumhur Tegep & Eddy Suratman & Sukma Indra, 2019. "The Failure of Foreign Direct Investment to Explain Unemployment Rate and the Mediating Role of Economic Growth and Minimum Wage," International Journal of Economics and Financial Issues, Econjournals, vol. 9(2), pages 154-161.
    6. Nesrine Dardouri & Abdelkader Aguir & Ramzi Farhani & Mounir Smida, 2023. "Revisiting the Determinants of Investment- The Case of Tunisia," Post-Print hal-04101430, HAL.
    7. Iordache Mihaela & Matei Mihaela & Țiţan Emilia, 2023. "Global Connections: Examining the Role of Remittances in Economic development," Journal of Social and Economic Statistics, Sciendo, vol. 12(2), pages 53-71, December.
    8. Abdulmohsen Alfalih, Abdullah & Bel Hadj, Tarek, 2021. "Asymmetric effects of foreign direct investment on employment in an oil producing country: Do human capital, institutions and oil rents matter?," Resources Policy, Elsevier, vol. 70(C).
    9. Zhenshan Yang & Xunhaoyue Zeng, 2019. "Envisioning the Impact of the Belt and Road Initiative on Regional Labor Markets," Sustainability, MDPI, vol. 11(8), pages 1-17, April.
    10. Yilmaz Bayar & Mahmut Unsal Sasmaz, 2017. "Impact of Foreign Direct Investments on Unemployment in Emerging Market Economies: A Co-integration Analysis," International Journal of Business and Economic Sciences Applied Research (IJBESAR), International Hellenic University (IHU), Kavala Campus, Greece (formerly Eastern Macedonia and Thrace Institute of Technology - EMaTTech), vol. 10(3), pages 90-96, September.
    11. Adam P. Balcerzak & Michal Bernard Pietrzak, 2016. "Dynamic Panel Analysis of Influence of Quality of Human Capital on Total Factor Productivity in Old European Union Countries," Working Papers 19/2016, Institute of Economic Research, revised May 2016.
    12. Ani Silvia & Zulpahmi & Sumardi, 2019. "Spillover Effect of Islamic Stock Markets in Asia," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 28-40.
    13. Chukwuebuka Bernard Azolibe & Stephen Kelechi Dimnwobi & Chidiebube Peace Uzochukwu-Obi, 2022. "The Determinants of Unemployment Rate in Developing Economies: Does Banking System Credit Matter?," Working Papers 22/044, European Xtramile Centre of African Studies (EXCAS).
    14. Mohd IRSHAD & Syed Hasan QAYED, 2022. "Casual nexus between economic growth, FDI and employment: An inquiry into BRICS and ASEAN," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(2(631), S), pages 107-124, Summer.
    15. Chukwuebuka Bernard Azolibe & Stephen Kelechi Dimnwobi & Chidiebube Peace Uzochukwu-Obi, 2022. "The Determinants of Unemployment Rate in Developing Economies: Does Banking System Credit Matter?," Working Papers of the African Governance and Development Institute. 22/044, African Governance and Development Institute..

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Robert Lehmann & Antje Weyh, 2016. "Forecasting Employment in Europe: Are Survey Results Helpful?," Journal of Business Cycle Research, Springer;Centre for International Research on Economic Tendency Surveys (CIRET), vol. 12(1), pages 81-117, September.
    2. Helmut Lütkepohl, 2013. "Vector autoregressive models," Chapters, in: Nigar Hashimzade & Michael A. Thornton (ed.), Handbook of Research Methods and Applications in Empirical Macroeconomics, chapter 6, pages 139-164, Edward Elgar Publishing.
    3. Elena Argentesi & Helmut Lütkepohl & Massimo Motta, 2010. "Acquisition of Information and Share Prices: An Empirical Investigation of Cognitive Dissonance," German Economic Review, Verein für Socialpolitik, vol. 11(3), pages 381-396, August.
    4. Tirunillai, S. & Tellis, G.J., 2011. "Does Online Chatter Really Matter? Dynamics of User-Generated Content and Stock Performance," ERIM Report Series Research in Management 25817, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    5. Emirmahmutoglu, Furkan & Kose, Nezir, 2011. "Testing for Granger causality in heterogeneous mixed panels," Economic Modelling, Elsevier, vol. 28(3), pages 870-876, May.
    6. Hui, Eddie C.M. & Chen, Jia, 2012. "Investigating the change of causality in emerging property markets during the financial tsunami," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 391(15), pages 3951-3962.
    7. Markku Lanne & Jani Luoto, 2016. "Noncausal Bayesian Vector Autoregression," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 31(7), pages 1392-1406, November.
    8. Di Iorio, Francesca & Triacca, Umberto, 2013. "Testing for Granger non-causality using the autoregressive metric," Economic Modelling, Elsevier, vol. 33(C), pages 120-125.
    9. Helmut Luetkepohl, 2007. "Econometric Analysis with Vector Autoregressive Models," Economics Working Papers ECO2007/11, European University Institute.
    10. Stahl, Gerhard & Sibbertsen, Philipp & Bertram, Philip, 2011. "Modellrisiko = Spezifikation + Validierung," Hannover Economic Papers (HEP) dp-468, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
    11. Fabienne Fortanier & Selwyn Moons, 2011. "Foreign Investors in The Netherlands: Heterogeneous Employment and Productivity Effects," De Economist, Springer, vol. 159(4), pages 511-531, December.
    12. Matteo Fragetta & Emanuel Gasteiger, 2014. "Fiscal Foresight, Limited Information and the Effects of Government Spending Shocks," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 76(5), pages 667-692, October.
    13. Gubler, Matthias & Hertweck, Matthias S., 2013. "Commodity price shocks and the business cycle: Structural evidence for the U.S," Journal of International Money and Finance, Elsevier, vol. 37(C), pages 324-352.
    14. Péguin-Feissolle, Anne & Strikholm, Birgit & Teräsvirta, Timo, 2007. "Testing the Granger noncausality hypothesis in stationary nonlinear models of unknown functional form," SSE/EFI Working Paper Series in Economics and Finance 672, Stockholm School of Economics, revised 18 Jan 2012.
    15. Koo, Tay T.R. & Tan, David T. & Duval, David Timothy, 2013. "Direct air transport and demand interaction: A vector error-correction model approach," Journal of Air Transport Management, Elsevier, vol. 28(C), pages 14-19.
    16. Woźniak, Tomasz, 2015. "Testing causality between two vectors in multivariate GARCH models," International Journal of Forecasting, Elsevier, vol. 31(3), pages 876-894.
    17. Enzo Weber, 2006. "British Interest Rate Convergence Between The Us And Europe: A Recursive Cointegration Analysis," The IUP Journal of Monetary Economics, IUP Publications, vol. 0(4), pages 29-47, November.
    18. Tang, Chor Foon, 2010. "Savings-led growth theories: A time series analysis for Malaysia using the bootstrapping and time-varying causality techniques," MPRA Paper 27299, University Library of Munich, Germany.
    19. Vijay Varadi & C. Vanlalramsanga, 2012. "Assessment of the Impact of Fiscal Policy on Economic Growth: An Empirical Analysis," EERI Research Paper Series EERI_RP_2012_06, Economics and Econometrics Research Institute (EERI), Brussels.
    20. Abdelwahab Allali & Amor Oueslati & Abdelwahed Trabelsi, 2011. "Detection of Information Flow in Major International Financial Markets by Interactivity Network Analysis," Asia-Pacific Financial Markets, Springer;Japanese Association of Financial Economics and Engineering, vol. 18(3), pages 319-344, September.

    More about this item

    Keywords

    FDI; Unemployment; Vector Autoregressive Modelling;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ers:journl:v:xiv:y:2011:i:1:p:3-14. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marios Agiomavritis (email available below). General contact details of provider: https://ersj.eu/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.