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Labour market competitiveness and foreign direct investment: The case of Malaysia, Thailand and the Philippines

Author

Listed:
  • Ismail, Rahmah
  • Yussof, Ishak

Abstract

This article investigates whether labour market competitiveness affects the inflows of foreign direct investment (FDI) into the ASEAN economies Malaysia, Thailand and the Philippines. The analysis is based on a regression model using time series data on FDI, wages, the labour force, skills, R&D expenditure, the interest rate and several variables critical for economic development. The study shows that the labour market determinants differ between countries in terms of their role in FDI inflows. Thus analysis results suggest that, with regard to labour market competitiveness, different countries may require different policy recommendations in order to attract FDI inflows into their countries.

Suggested Citation

Handle: RePEc:eee:paresc:v:82:y:2003:i:3:p:389-402
DOI: 10.1007/s10110-003-0170-2
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JEL classification:

  • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
  • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
  • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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