IDEAS home Printed from https://ideas.repec.org/a/mve/journl/v44y2018i2p59-77.html
   My bibliography  Save this article

Job Creation and FDI: The Role of Economic, Social and Political Climate in Developing Countries

Author

Listed:
  • Shar Self

    (University of Northern Iowa)

  • Mary Connerley

    (University of Northern Iowa)

Abstract

This paper examines the link between job creation and foreign direct investment (FDI) at the company/project level and whether or not this relationship is influenced by the economic, social and political climate of the country. The focus is on developing countries. Using data at the project level, results show that, for some geographic locations, FDI has a positive and significant impact on job creation. This relationship is found to hold for projects in East Asia and South Asia and to some extent for Latin America as well. However, this relationship is reversed for projects in Sub-Saharan African and the Middle Eastern and Northern African countries implying a strong regional impact. Additionally, it was found that a lack of effective governance at the country level has a negative impact on job creation. Finally, the results relating to FDI are no longer significant after controlling for endogeneity. The results relating to the harmful impact of an ill-functioning or dysfunctional governance and socio-political environment on job creation remain invariant regardless of estimation specification or method.

Suggested Citation

  • Shar Self & Mary Connerley, 2018. "Job Creation and FDI: The Role of Economic, Social and Political Climate in Developing Countries," Journal of Economic Insight, Missouri Valley Economic Association, vol. 44(2), pages 59-77.
    • Handle: RePEc:mve:journl:v:44:y:2018:i:2:p:59-77
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • F65 - International Economics - - Economic Impacts of Globalization - - - Finance
    • F66 - International Economics - - Economic Impacts of Globalization - - - Labor

    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:mve:journl:v:44:y:2018:i:2:p:59-77. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Ken Brown (email available below). General contact details of provider: https://edirc.repec.org/data/mveaaea.html .

    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.