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

Author

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  • Lenuta Carp

    () (Alexandru Ioan Cuza University of Iasi)

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.

Suggested Citation

  • Lenuta Carp, 2012. "The Impact of FDI on the labor market in Central and Eastern Europe during the international crisis," Review of Applied Socio-Economic Research, Pro Global Science Association, vol. 3(1), pages 43-54, July.
  • Handle: RePEc:rse:wpaper:v:3:y:2012:i:1:p:43-54
    as

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    References listed on IDEAS

    as
    1. Voicu, Alexandru, 2005. "Employment dynamics in the Romanian labor market. A Markov chain Monte Carlo approach," Journal of Comparative Economics, Elsevier, vol. 33(3), pages 604-639, September.
    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. 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.
    4. 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.
    5. 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.
    6. 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.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

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

    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • J82 - Labor and Demographic Economics - - Labor Standards - - - Labor Force Composition

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