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

  • Lenuta Carp

    ()

    (Alexandru Ioan Cuza University of Iasi)

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    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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    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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    1. Dostie, Benoit & Sahn, David E., 2006. "Labor Market Dynamics in Romania During a Period of Economic Liberalization," IZA Discussion Papers 2511, Institute for the Study of Labor (IZA).
    2. 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, vol. 33(2(42)), pages 169-183, December.
    3. Alexandru Voicu, 2002. "Employment Dynamics in the Romanian Labor Market. A Markov Chain Monte Carlo Approach," Computing in Economics and Finance 2002 349, Society for Computational Economics.
    4. 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, vol. 19(1), pages 17-37, March.
    5. 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, vol. 3(1(9)), pages 57-64.
    6. Ioan Cindrea, 2007. "The Crisis on the Labor Market in Romania," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 4(4(509)), pages 25-28, April.
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