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Foreign direct investment and employment in transition economies

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  • Saul Estrin

    (LSE, UK, and IZA, Germany)

Abstract

Foreign direct investment (FDI) has been argued to improve company performance and stimulate growth and employment. Transition economies of Central and Eastern Europe (CEE) faced a desperate need to join the global economy, to improve their competitiveness and to create jobs through FDI. So, did the FDI come, and did it deliver what was expected? FDI levels were high for CEE, and for some resource-rich transition countries (e.g. Russia and some of Central Asia), but primarily delivered significant benefits (e.g. employment) for the former. FDI arrived much later to other transition countries (e.g. the former Soviet republics and the Balkans) and had much less impact.

Suggested Citation

  • Saul Estrin, 2017. "Foreign direct investment and employment in transition economies," IZA World of Labor, Institute of Labor Economics (IZA), pages 330-330, January.
    • Handle: RePEc:iza:izawol:journl:y:2017:n:330
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    References listed on IDEAS

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    Cited by:

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    2. Nicolae Marinescu, 2020. "The Impact Of Foreign Direct Investment On Employment In Host Countries: The Case Of Central And Eastern Europe," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 5, pages 181-186, October.
    3. Ștefan Cristian Gherghina & Liliana Nicoleta Simionescu & Oana Simona Hudea, 2019. "Exploring Foreign Direct Investment–Economic Growth Nexus—Empirical Evidence from Central and Eastern European Countries," Sustainability, MDPI, vol. 11(19), pages 1-33, September.
    4. Horie, Norio & Iwasaki, Ichiro & 岩﨑, 一郎, 2022. "Returns to Education in European Emerging Markets: A Meta-Analytic Review," RRC Working Paper Series 95, Russian Research Center, Institute of Economic Research, Hitotsubashi University.
    5. Valentina VASILE & Daniel ŞTEFAN & Călin-Adrian COMES & Elena BUNDUCHI & Anamari-Beatrice ŞTEFAN, 2020. "FDI or Remittances for Sustainable External Financial Inflows. Theoretical Delimitations and Practical Evidence using Granger Causality," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(4), pages 131-153, December.
    6. K. Kalotay & A. Sulstarova, 2021. "FDI in the Post-Soviet Space Three Decades after the Disintegration of the Soviet Union," Outlines of global transformations: politics, economics, law, Center for Crisis Society Studies, vol. 14(5).
    7. Joel I. Deichmann & Stephen Grubaugh & Patrick Scholten, 2022. "FDI propensity and geo-cultural interaction in former Yugoslavia: pairwise analysis of origin and destination countries," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 12(3), pages 479-505, September.
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    More about this item

    Keywords

    foreign direct investment; transition countries; unemployment;
    All these keywords.

    JEL classification:

    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • P2 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • F2 - International Economics - - International Factor Movements and International Business

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