IDEAS home Printed from https://ideas.repec.org/p/erp/oneeur/p0005.html
   My bibliography  Save this paper

The Value of Diversity: Foreign Direct Investment and Employment in Central Europe During Economic Recovery

Author

Listed:
  • Tomasz Mickiewicz
  • Slavo Radosevic
  • Urmas Varblane

Abstract

We examine the role of FDI in job creation and job preservation as well as their role in changing the structure of employment. Our analysis refers to Czech Republic, Hungary, Slovakia and Estonia. We present descriptive stage model of FDI progression into transition economy. Employment aspects of the model are next analysed. We conclude that the role of FDI in employment creation/preservation has been most successful in Hungary and than in Estonia. Yet, FDI can operate as complement rather than as substitute in employment generation/preservation. The paper shows that the increasing differences in sectoral distribution of FDI employment across countries are closely related to FDI inflows per capita. The bigger diversity of types of FDI is more favourable for the host economy. There is higher likelihood that it will lead to more diverse types of spillovers and skill transfers. If policy is unable to maximise the scale of FDI inflows than policy makers should focus much more on attracting diverse types of FDI.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Tomasz Mickiewicz & Slavo Radosevic & Urmas Varblane, 2000. "The Value of Diversity: Foreign Direct Investment and Employment in Central Europe During Economic Recovery," One Europe or Several? Working Papers 5, One-Europe Programme.
    • Handle: RePEc:erp:oneeur:p0005
    as

    Download full text from publisher

    File URL: http://www.one-europe.ac.uk/pdf/slavoW5.PDF
    File Function: Full text
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Gros,Daniel & Steinherr,Alfred, 2004. "Economic Transition in Central and Eastern Europe," Cambridge Books, Cambridge University Press, number 9780521826389, January.
    2. Gray, Cheryl W, 1996. "In Search of Owners: Privatization and Corporate Governance in Transition Economies," The World Bank Research Observer, World Bank, vol. 11(2), pages 179-197, August.
    3. Klaus E. Meyer, 1998. "Direct Investment in Economies in Transition," Books, Edward Elgar Publishing, number 1413.
    4. Klaus E. Meyer & Christina Pind, 1999. "Research Note: The slow growth of foreign direct investment in the Soviet Union successor states," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 7(1), pages 201-214, March.
    5. Hans‐Peter Lankes & A. J. Venables, 1996. "Foreign direct investment in economic transition: the changing pattern of investments," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 4(2), pages 331-347, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Camilla Jensen, 2006. "Foreign Direct Investment and economic transition: Panacea or pain killer?," Europe-Asia Studies, Taylor & Francis Journals, vol. 58(6), pages 881-902.
    2. Franck Barry, 2013. "The Knowledge Economy, Economic Transformations and ICT: Regional Dynamics in the Deployment Phase. Case study: Southern and Eastern Ireland," JRC Research Reports JRC83549, Joint Research Centre.
    3. Andrzej Cieślik & Oleg Gurshev, 2021. "Factor Endowments, Economic Integration, Round-Tripping, and Inward FDI: Evidence from the Baltic Economies," JRFM, MDPI, vol. 14(8), pages 1-26, July.
    4. Sass, Magdolna, 2004. "FDI in Hungary - the first mover's advantage and disadvantage," EIB Papers 8/2004, European Investment Bank, Economics Department.
    5. Joshua Abor & Simon Harvey, 2008. "Foreign direct investment and employment: host country experience," Macroeconomics and Finance in Emerging Market Economies, Taylor & Francis Journals, vol. 1(2), pages 213-225.
    6. Marian Dinga, 2008. "The Impact of Territorially Concentraced FDI on Local Labor Markets: Evidence from the Czech Republic," CERGE-EI Working Papers wp348, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    7. Karoly Fazekas & Jeno Koltay (ed.), 2004. "The Hungarian Labour Market 2004," The Hungarian Labour Market Yearbooks, Institute of Economics, Centre for Economic and Regional Studies, number 2004, December.
    8. Villa, Stefania., 2010. "Exploring the linkages between investment and employment in Moldova : a time-series analysis," ILO Working Papers 994553423402676, International Labour Organization.
    9. Onaran, Ozlem & Stockhammer, Engelbert, 2008. "The effect of FDI and foreign trade on wages in the Central and Eastern European Countries in the post-transition era: A sectoral analysis for the manufacturing industry," Structural Change and Economic Dynamics, Elsevier, vol. 19(1), pages 66-80, March.
    10. Urmas Varblane & Tonu Roolaht & Ele Reiljan & Rein Juriado, 2001. "Estonian Outward Foreign Direct Investments," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 9, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    11. Dinga, Marián & Münich, Daniel, 2010. "The impact of territorially concentrated FDI on local labor markets: Evidence from the Czech Republic," Labour Economics, Elsevier, vol. 17(2), pages 354-367, April.
    12. Hussain Ali Bekhet, 2013. "Examining the Equilibrium Relationships between Foreign Direct Investment Inflows and Employment in Manufacturing and Services Sectors: Evidence from Malaysia," Journal of Social and Development Sciences, AMH International, vol. 4(1), pages 32-38.
    13. Yousafzai, Arshad Hayat, 2014. "Exploring the Causality and Co-integration Relationship between FDI, GDP and Employment: A Case of Czech Republic," MPRA Paper 54827, University Library of Munich, Germany.
    14. repec:ilo:ilowps:455342 is not listed on IDEAS
    15. Mouldi Ben Amor, 2023. "Nexus Between Foreign Direct Investment and Employment in Manufacturing and Services Sectors in Tunisia: An ARDL Approach," International Journal of Economic Sciences, European Research Center, vol. 12(2), pages 1-20, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Helena Hannula, 2001. "Restructuring of the Estonian economy and the role of FDIs in it," University of Tartu - Faculty of Economics and Business Administration, in: Urmas Varblane (ed.), Foreign Direct Investments in the Estonian Economy, edition 1, volume 9, chapter 3, pages 91-174, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    2. Nauro F. Campos & Yuko Kinoshita, 2002. "Foreign Direct Investment as Technology Transferred: Some Panel Evidence from the Transition Economies," Manchester School, University of Manchester, vol. 70(3), pages 398-419, June.
    3. Fabienne Boudier‐Bensebaa, 2005. "Agglomeration economies and location choice: Foreign direct investment in Hungary," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 13(4), pages 605-628, October.
    4. Beata K. Smarzynska & Shang-Jin Wei, 2000. "Corruption and Composition of Foreign Direct Investment: Firm-Level Evidence," NBER Working Papers 7969, National Bureau of Economic Research, Inc.
    5. Drogendijk, H.J., 2001. "Expansion patterns of Dutch firms in Central and Eastern Europe : Learning to internationalize," Other publications TiSEM 18571cef-0dd0-46ff-82aa-3, Tilburg University, School of Economics and Management.
    6. Azam, Muhammad & Khan, Hashim & Hunjra, Ahmed Imran & Ahmad, H. Mushtaq & Chani, Muhammad Irfan, 2011. "Institutions, macroeconomic policy and foreign direct investment: South Asian countries case," MPRA Paper 32480, University Library of Munich, Germany.
    7. Matija Rojec & Jože P. Damijan & Boris Majcen, 2002. "Foreign ownership and export propensity: the slovenian experience," Prague Economic Papers, Prague University of Economics and Business, vol. 2002(4), pages 339-355.
    8. Pisoni, Alessia & Fratocchi, Luciano & Onetti, Alberto, 2013. "Subsidiary autonomy in transition economies: Italian SMEs in Central and Eastern European countries," Journal of East European Management Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 18(3), pages 336-370.
    9. Kowalski, Tadeusz, 2013. "Globalization and Transformation in Central European Countries: The Case of Poland," MPRA Paper 59306, University Library of Munich, Germany.
    10. Sels, A.T.H., 2006. "Foreign direct investment as an entry mode. An application in emerging economies," Other publications TiSEM 583ca9b5-1691-425d-8f77-0, Tilburg University, School of Economics and Management.
    11. Saul Estrin & Milica Uvalic, 2013. "Foreign direct investment into transition economies: Are the Balkans different?," LEQS – LSE 'Europe in Question' Discussion Paper Series 64, European Institute, LSE.
    12. Ziacik, Terri, 2000. "An assessment of the Estonian investment climate: Results of a survey of foreign investors and policy implications," BOFIT Discussion Papers 3/2000, Bank of Finland Institute for Emerging Economies (BOFIT).
    13. Hanhee Lee, 2015. "Foreign Direct Investment In North Korea And The Effect Of Special Economic Zones: Learning From Transition Economies," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 40(2), pages 35-56, June.
    14. repec:zbw:bofitp:2000_003 is not listed on IDEAS
    15. Estrin, Saul & Uvalic, Milica, 2013. "Foreign direct investment into transition economies: are the Balkans different?," LSE Research Online Documents on Economics 53180, London School of Economics and Political Science, LSE Library.
    16. Peter Walkenhorst, 2001. "The Geography of Foreign Direct Investment in Poland's Food Industry," Journal of Agricultural Economics, Wiley Blackwell, vol. 52(3), pages 71-86, September.
    17. van de Laar, M.M., 2004. "Financing Dutch direct investments to transition economies," Research Memorandum 029, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
    18. Bevan, Alan & Estrin, Saul & Meyer, Klaus, 2004. "Foreign investment location and institutional development in transition economies," International Business Review, Elsevier, vol. 13(1), pages 43-64, February.
    19. Wei, Shang-Jin & Javorcik, Beata, 2001. "Corruption and Foreign Direct Investment: Firm-Level Evidence," CEPR Discussion Papers 2967, C.E.P.R. Discussion Papers.
    20. Saul Estrin & Milica Uvalic, 2013. "Foreign direct investment into transition economies: Are the Balkans different?," Europe in Question Discussion Paper Series of the London School of Economics (LEQs) 4, London School of Economics / European Institute.
    21. repec:rdg:wpaper:em-dp2004-10 is not listed on IDEAS
    22. Julia Manea & Robert Pearce, 2006. "MNEs’ strategies in Central and Eastern Europe: key elements of subsidiary behaviour," Management International Review, Springer, vol. 46(2), pages 235-255, March.

    More about this item

    Keywords

    East-Central Europe; economic integration; employment policy; foreign direct investment;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:erp:oneeur:p0005. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Glynis Flood (email available below). General contact details of provider: http://www.one-europe.ac.uk .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.