Foreign Direct Investment and Unemployment: VAR Analysis for Poland in the Years 1995-2009

Mirosława Żurek

63 citations0/0 files storedEUROPEAN RESEARCH STUDIES JOURNAL

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International Business and FDI Monetary Policy and Economic Impact Unemployment and Economic Growth

Abstract

The paper is devoted to the influence of foreign direct investment on labour markets. The interdependencies between FDI and unemployment were econometrically analyzed in Poland. In the research the VAR methodology was utilized based on aggregate quarterly data. The VAR analysis for the period 1995-2009 have proved interdependencies between FDI and employment in Poland. FDI impulse leads to decreasing of unemployment rate. However, the positive influence of FDI on Polish labour market tend be rather short term. It can suggest that government policies designed for encouraging FDI investment should be reformed in order to make conditions for positive long term influence of foreign capital inflow on Polish labour market.

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References

1980Macroeconomics and Reality 2008Investigating Causal Relations by Econometric Models and Cross-Spectral Methods 1976A Classical Macroeconometric Model for the United States 2009Foreign Firms and Chinese Employment 1991Unemployment and Foreign Capital: The Relative Opportunity Costs of Domestic Labour and Welfare

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