Sectoral distribution of FDI and employment: Evidence from post- transitional European countries
This paper examines, from the perspective of Post-Keynesian economics, the effects of Foreign Direct Investment (FDI) on the employment rate in 18 post-transitional European countries from 1995 to 2021. Using a two-step system Generalised Method of Moments (GMM) panel data estimator, we tes...
| الحاوية / القاعدة: | Panoeconomicus |
|---|---|
| المؤلفون الرئيسيون: | , |
| التنسيق: | مقال |
| اللغة: | الإنجليزية |
| منشور في: |
Economists' Association of Vojvodina
2023-01-01
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| الموضوعات: | |
| الوصول للمادة أونلاين: | https://doiserbia.nb.rs/img/doi/1452-595X/2023/1452-595X2304573J.pdf |
| _version_ | 1851950714038779904 |
|---|---|
| author | Josifidis Kosta Supić Novica |
| author_facet | Josifidis Kosta Supić Novica |
| author_sort | Josifidis Kosta |
| collection | DOAJ |
| container_title | Panoeconomicus |
| description | This paper examines, from the perspective of Post-Keynesian economics, the
effects of Foreign Direct Investment (FDI) on the employment rate in 18
post-transitional European countries from 1995 to 2021. Using a two-step
system Generalised Method of Moments (GMM) panel data estimator, we test the
hypothesis that the employment impact of investment depends on the
interaction of FDI and domestic investment in terms of crowding-in and
crowding-out relationships, assuming that this relationship is sensitive to
the sectoral distribution of FDI stock. Our findings suggest that the
reallocation of FDI inflows from the manufacturing sector to the less labour
intensive financial and information and communication technology (ICT)
sectors tends to reduce the employment effect of FDI both directly and
indirectly by reducing the magnitude of the crowding- in effect of FDI on
domestic investment. The outcome of our study is of great interest to
economic policy makers. If foreign investment displaces domestic investment
and reduces employment in high value-added sectors, policies intended to
attract foreign capital could be challenged and undermined. Otherwise, if
foreign and domestic investment in sectors with high added value are
complementary, it justifies policies aimed at attracting foreign investment. |
| format | Article |
| id | doaj-art-e5db8d06f8974ca9843639c2d156e3cf |
| institution | Directory of Open Access Journals |
| issn | 1452-595X 2217-2386 |
| language | English |
| publishDate | 2023-01-01 |
| publisher | Economists' Association of Vojvodina |
| record_format | Article |
| spelling | doaj-art-e5db8d06f8974ca9843639c2d156e3cf2025-08-19T21:46:42ZengEconomists' Association of VojvodinaPanoeconomicus1452-595X2217-23862023-01-0170457359910.2298/PAN2304573J1452-595X2304573JSectoral distribution of FDI and employment: Evidence from post- transitional European countriesJosifidis Kosta0https://orcid.org/0000-0002-2522-9202Supić Novica1https://orcid.org/0000-0002-9526-7255University of Novi Sad, SerbiaUniversity of Novi Sad, Faculty of Economics, SerbiaThis paper examines, from the perspective of Post-Keynesian economics, the effects of Foreign Direct Investment (FDI) on the employment rate in 18 post-transitional European countries from 1995 to 2021. Using a two-step system Generalised Method of Moments (GMM) panel data estimator, we test the hypothesis that the employment impact of investment depends on the interaction of FDI and domestic investment in terms of crowding-in and crowding-out relationships, assuming that this relationship is sensitive to the sectoral distribution of FDI stock. Our findings suggest that the reallocation of FDI inflows from the manufacturing sector to the less labour intensive financial and information and communication technology (ICT) sectors tends to reduce the employment effect of FDI both directly and indirectly by reducing the magnitude of the crowding- in effect of FDI on domestic investment. The outcome of our study is of great interest to economic policy makers. If foreign investment displaces domestic investment and reduces employment in high value-added sectors, policies intended to attract foreign capital could be challenged and undermined. Otherwise, if foreign and domestic investment in sectors with high added value are complementary, it justifies policies aimed at attracting foreign investment.https://doiserbia.nb.rs/img/doi/1452-595X/2023/1452-595X2304573J.pdffdiemploymenteconomic sectorspost-transitional european countriespost-keynesian economics |
| spellingShingle | Josifidis Kosta Supić Novica Sectoral distribution of FDI and employment: Evidence from post- transitional European countries fdi employment economic sectors post-transitional european countries post-keynesian economics |
| title | Sectoral distribution of FDI and employment: Evidence from post- transitional European countries |
| title_full | Sectoral distribution of FDI and employment: Evidence from post- transitional European countries |
| title_fullStr | Sectoral distribution of FDI and employment: Evidence from post- transitional European countries |
| title_full_unstemmed | Sectoral distribution of FDI and employment: Evidence from post- transitional European countries |
| title_short | Sectoral distribution of FDI and employment: Evidence from post- transitional European countries |
| title_sort | sectoral distribution of fdi and employment evidence from post transitional european countries |
| topic | fdi employment economic sectors post-transitional european countries post-keynesian economics |
| url | https://doiserbia.nb.rs/img/doi/1452-595X/2023/1452-595X2304573J.pdf |
| work_keys_str_mv | AT josifidiskosta sectoraldistributionoffdiandemploymentevidencefromposttransitionaleuropeancountries AT supicnovica sectoraldistributionoffdiandemploymentevidencefromposttransitionaleuropeancountries |