Foreign Direct Investment And Employment In Manufacturing And Services Sectors: Fresh Empirical Evidence From Singapore
AbstractManufacturing and services have been regarded as the ???twin engines' of growth for Singapore economy. As the economy is moving up the value chain from downstream to upstream activities, a significant proportion of FDI (foreign direct investment) has been attracted to the manufacturing and services sectors. This paper examines the causal relationships between inward FDI and the host country's employment in these two sectors using tri-variate VAR (vector autoregressive) framework. The main findings show evidence of unidirectional causality, running from employment in manufacturing and services to FDI inflows. Furthermore, there is evidence showing strong employment linkages, predominantly from the manufacturing to services. The present study provides useful policy implications towards promoting foreign investment in emerging areas of and manpower development in both sectors of the economy.
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Bibliographic InfoPaper provided by Monash University, Department of Economics in its series Monash Economics Working Papers with number 15/08.
Length: 13 pages
Date of creation: 03 Jun 2008
Date of revision:
Contact details of provider:
Postal: Department of Economics, Monash University, Victoria 3800, Australia
Web page: http://www.buseco.monash.edu.au/eco/
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Other versions of this item:
- Koi Nyen Wong & Tuck Cheong Tang, 2011. "Foreign direct investment and employment in manufacturing and services sectors: Fresh empirical evidence from Singapore," Journal of Economic Studies, Emerald Group Publishing, vol. 38(3), pages 313-330, July.
- E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
- F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-07-17 (All new papers)
- NEP-MAC-2009-07-17 (Macroeconomics)
- NEP-SEA-2009-07-17 (South East Asia)
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