Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/197038
Authors: 
Bayraktar-Sağlam, Bahar
Böke, Selin Sayek
Year of Publication: 
2017
Citation: 
[Journal:] Economies [ISSN:] 2227-7099 [Volume:] 5 [Year:] 2017 [Issue:] 4 [Pages:] 1-23
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.
Subjects: 
foreign direct investment
labor cost
panel VAR
Impulse Response Functions
JEL: 
F23
J31
C33
Persistent Identifier of the first edition: 
Creative Commons License: 
https://creativecommons.org/licenses/by/4.0/
Document Type: 
Article

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