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Mapping Clusters In Central And Eastern European Regions Based On Fdi, Remittances And Employment – A Spatial Statistics Grouping Analysis

Author

Listed:
  • Cristina LINCARU

    (Dr, FeRSA, Department of Labour Market, National Scientific Research Institute for Labour and Social Protection, Bucharest, Romania)

  • Speranța PÎRCIOG

    (Dr Scientific Director, National Scientific Research Institute for Labour and Social Protection, Bucharest, Romania)

Abstract

Central and Eastern European (CEE) and Visegrad countries transform and develop in different spatial patterns in a global economy. Host labour markets benefit directly from Foreign Direct Investment (FDI) inward flows through jobs creation or increased productivity. On the other side, the labour force rises its geographical mobility and benefits from jobs in FDI's source countries, sending personal remittances. Global integration marks that the "receipts of remittances have become an important and stable source of funds that exceeds FDI" (indexmundi.com). Are the CEE /Visegrad countries similar concerning their spatiotemporal pattern of FDI inflows? These countries are identical in their development model, described by the coordinates of FDI, remittances and Employment? We applied for 35 European countries from 2013-to 2019 the Similarity check –Grouping Analysis ARC GIS-tool from the Spatially Constrained Multivariate Clustering (Spatial Statistics) family. The FDI inflow as input proves to be more inertial, according to the categories set by EuroVoc. Simultaneously, the FDI inward as output (employment growth or labour productivity growth) differentiate CEE countries next to labour/ human capital mobility as personnel remittances in more heterogeneous categories. In conclusion, for CEE countries, capital mobility and labour & human capital mobility create different development patterns globally. Therefore, it is not enough to build policies to attract capital (FDI) and attract high human capital.

Suggested Citation

  • Cristina LINCARU & Speranța PÎRCIOG, 2022. "Mapping Clusters In Central And Eastern European Regions Based On Fdi, Remittances And Employment – A Spatial Statistics Grouping Analysis," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(1), pages 67-104, June.
    • Handle: RePEc:hrs:journl:v:xiv:y:2022:i:1:p:67-104
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    More about this item

    Keywords

    CEE; inward FDI rates; personal remittances receipt as GDP rate; employment rate; Similarity check –Grouping Analysis; spatial statistics;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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