Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/73261
Authors: 
Leibrecht, Markus
Scharler, Johann
Year of Publication: 
2007
Series/Report no.: 
Working Paper, Department of Economics, Johannes Kepler University of Linz 0716
Abstract: 
The purpose of this paper is to investigate empirically the importance of labor market conditions and in particular of employment protection legislation as a determinant of bilateral Foreign Direct Investment flows to seven Central and Eastern European countries. Although our results indicate that countries characterized by low unit labor costs tend to attract more Foreign Direct Investment, we find no evidence suggesting that employment protection legislation matters in this context. This result also holds if we control for the riskiness of the host countries.
Subjects: 
Foreign Direct Investment
Central and Eastern Europe
Labor Market
Employment Protection
JEL: 
F21
F23
J50
Document Type: 
Working Paper

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