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
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Englisch
- Bibliographic citation
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Journal: Economies ; ISSN: 2227-7099 ; Volume: 5 ; Year: 2017 ; Issue: 4 ; Pages: 1-23 ; Basel: MDPI
- Classification
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Wirtschaft
Multinational Firms; International Business
Wage Level and Structure; Wage Differentials
Multiple or Simultaneous Equation Models: Panel Data Models; Spatio-temporal Models
- Subject
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foreign direct investment
labor cost
panel VAR
Impulse Response Functions
- Event
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Geistige Schöpfung
- (who)
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Bayraktar-Sağlam, Bahar
Böke, Selin Sayek
- Event
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Veröffentlichung
- (who)
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MDPI
- (where)
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Basel
- (when)
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2017
- DOI
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doi:10.3390/economies5040036
- Handle
- Last update
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10.03.2025, 11:42 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Artikel
Associated
- Bayraktar-Sağlam, Bahar
- Böke, Selin Sayek
- MDPI
Time of origin
- 2017