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Assessing The Impact Of The Labour Market Determinants In Attracting Fdi

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  • OANA CRISTINA POPOVICI

Abstract

Labour market determinants are considered among the main factors attracting FDI in transition countries. The aim of this paper is to to emphasize the importance of the labour market in attracting FDI in both Central and Eastern and Western European countries. Using a fixed-effects panel data approach during 1996-2013, we find that labour market determinants are still important for foreign investors, but that they are different according to the group of countries considered. Also, the quality of the labour market is more important for investors in the new EU countries than for the old EU member states. Finally, we are signaling that the variables used until recently for describing labour market are not enough for assessing its entire complexity; more variables expressing the quality of the labour market should be included in further empirical studies.

Suggested Citation

  • Oana Cristina Popovici, 2015. "Assessing The Impact Of The Labour Market Determinants In Attracting Fdi," Journal of Academic Research in Economics, Spiru Haret University, Faculty of Accounting and Financial Management Constanta, vol. 7(1 (March)), pages 59-72.
    • Handle: RePEc:shc:jaresh:v:7:y:2015:i:1:p:59-72
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    Cited by:

    1. Oana Cristina POPOVICI, 2016. "Determinants Of Fdi In The New Eu Member States," Romanian Economic Business Review, Romanian-American University, vol. 11(2), pages 173-182, June.

    More about this item

    Keywords

    foreign direct investments; labour market; panel data; Central and Eastern Europe; Western Europe.;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor

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