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The Impact of FDI on the labor market in Central and Eastern Europe during the international crisis

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  • Lenuta Carp

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    (Alexandru Ioan Cuza University of Iasi)

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    Abstract

    One of the most important consequences of the economic and financial crisis is the record of negative growth rates and high rates of unemployment. FDI are widely recognized for their contribution on host country economic growth, therefore foreign capital inflows are considered a viable solution to reduce unemployment and stimulate economic growth. The aim of the paper is to review the main features of the labor market in Central and Eastern Europe countries, to analyze the dynamic of FDI flows in these countries and theoretically to present the effects of FDI on employment. The econometric analysis is conducted on the situation of Romania and emphasizes the negative relationship between FDI and unemployment.

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    File URL: http://reaser.eu/RePec/rse/wpaper/7_Rev3_Carp_ImpactFDI.pdf
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    Bibliographic Info

    Article provided by Pro Global Science Association in its journal Published in Review of Applied Socio-Economic Research.

    Volume (Year): 3 (2012)
    Issue (Month): 1 (July)
    Pages: 43-54

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    Handle: RePEc:rse:wpaper:v:3:y:2012:i:1:p:43-54

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    Related research

    Keywords: foreign direct investment; labor market; employment; unemployment; crisis;

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    References

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    1. Bellak, Christian & Leibrecht, Markus & Riedl, Aleksandra, 2008. "Labour costs and FDI flows into Central and Eastern European Countries: A survey of the literature and empirical evidence," Structural Change and Economic Dynamics, Elsevier, Elsevier, vol. 19(1), pages 17-37, March.
    2. Voicu, Alexandru, 2002. "Employment Dynamics in the Romanian Labor Market: A Markov Chain Monte Carlo Approach," IZA Discussion Papers 438, Institute for the Study of Labor (IZA).
    3. Benoit Dostie & David Sahn, 2006. "Labor Market Dynamics in Romania During a Period of Economic Liberalization," Cahiers de recherche 06-17, HEC Montréal, Institut d'économie appliquée, revised Jun 2008.
    4. Liana SON & Gratiela Georgiana CARICA, 2010. "The Dynamics of the European Labour Market and Unemployment in the Present Context of Global Economic Crisis: The Case of Romania," Timisoara Journal of Economics, West University of Timisoara, Romania, Faculty of Economics and Business Administration, West University of Timisoara, Romania, Faculty of Economics and Business Administration, vol. 3(1(9)), pages 57-64.
    5. Magdalena RADULESCU & Elena Nolica DRUICA, 2011. "FDIs and investment policy in some European countries after their EU accession. Challenges during the crisis," Romanian Journal of Economics, Institute of National Economy, Institute of National Economy, vol. 33(2(42)), pages 169-183, December.
    6. Ioan Cindrea, 2007. "The Crisis on the Labor Market in Romania," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, Asociatia Generala a Economistilor din Romania - AGER, vol. 4(4(509)), pages 25-28, April.
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