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Effects of labor market flexibility on foreign direct investment: China evidence

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  • Liu, Junxian
  • Guo, Zhaoying

Abstract

This paper selects 27 segments of China's manufacturing industry as research objects, and uses panel data of 2001–2011 years as the basis for an empirical test. The results show that the labor market flexibility influence the FDI inflows of manufacturing industry through cost channels and productivity channels respectively, and whether it promote or hinder FDI inflows of manufacturing industry is the results of joint action of the two channels.

Suggested Citation

  • Liu, Junxian & Guo, Zhaoying, 2023. "Effects of labor market flexibility on foreign direct investment: China evidence," Finance Research Letters, Elsevier, vol. 53(C).
    • Handle: RePEc:eee:finlet:v:53:y:2023:i:c:s1544612322007504
    DOI: 10.1016/j.frl.2022.103574
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    References listed on IDEAS

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