Next Article in Journal
Fiscal Deficit and Its Impact on Economic Growth: Evidence from Bangladesh
Next Article in Special Issue
Does Foreign Direct Investment Harm the Environment in Developing Countries? Dynamic Panel Analysis of Latin American Countries
Previous Article in Journal
The Effect of Access to Information and Communication Technology on Household Labor Income: Evidence from One Laptop Per Child in Uruguay
Previous Article in Special Issue
Does Foreign Direct Investment Successfully Lead to Sustainable Development in Singapore?
Article Menu

Export Article

Open AccessArticle
Economies 2017, 5(4), 36; https://doi.org/10.3390/economies5040036

Labor Costs and Foreign Direct Investment: A Panel VAR Approach

1
Department of Economics, Hacettepe University, Beytepe 06800, Ankara, Turkey
2
Department of Economics, Bilkent University, Bilkent 06800, Ankara, Turkey
*
Author to whom correspondence should be addressed.
Academic Editor: Eric Rougier
Received: 22 May 2017 / Revised: 2 August 2017 / Accepted: 8 September 2017 / Published: 26 September 2017
(This article belongs to the Special Issue FDI and Development: Emerging Issues)
View Full-Text   |   Download PDF [3425 KB, uploaded 26 September 2017]   |  

Abstract

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. View Full-Text
Keywords: foreign direct investment; labor cost; panel VAR; Impulse Response Functions foreign direct investment; labor cost; panel VAR; Impulse Response Functions
Figures

Figure 1

This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).
SciFeed

Share & Cite This Article

MDPI and ACS Style

Bayraktar-Sağlam, B.; Sayek Böke, S. Labor Costs and Foreign Direct Investment: A Panel VAR Approach. Economies 2017, 5, 36.

Show more citation formats Show less citations formats

Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Related Articles

Article Metrics

Article Access Statistics

1

Comments

[Return to top]
Economies EISSN 2227-7099 Published by MDPI AG, Basel, Switzerland RSS E-Mail Table of Contents Alert
Back to Top