Artikel

Labor costs and foreign direct investment: A panel VAR approach

This paper examines the endogenous interaction between labor costs and Foreign Direct Investment (FDI) in the OECD countries via the Panel VAR approach under system GMM estimates for the period 1995-2009. The available data allows identifying the relevance of the components of labor costs, and allows a detailed analysis across different sectors. Empirical findings have revealed that sectoral composition of FDI and the decomposition of labor costs play a significant role in investigating the dynamic association between labor costs and FDI. Further, results suggest that labor market policies should focus on productivity-enhancing tools in addition to price hindering tools.

Language
Englisch

Bibliographic citation
Journal: Economies ; ISSN: 2227-7099 ; Volume: 5 ; Year: 2017 ; Issue: 4 ; Pages: 1-23 ; Basel: MDPI

Classification
Wirtschaft
Multinational Firms; International Business
Wage Level and Structure; Wage Differentials
Multiple or Simultaneous Equation Models: Panel Data Models; Spatio-temporal Models
Subject
foreign direct investment
labor cost
panel VAR
Impulse Response Functions

Event
Geistige Schöpfung
(who)
Bayraktar-Sağlam, Bahar
Böke, Selin Sayek
Event
Veröffentlichung
(who)
MDPI
(where)
Basel
(when)
2017

DOI
doi:10.3390/economies5040036
Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Artikel

Associated

  • Bayraktar-Sağlam, Bahar
  • Böke, Selin Sayek
  • MDPI

Time of origin

  • 2017

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