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The effect of foreign direct investment on unemployment in Bulgaria

Author

Listed:
  • Rosen Nikolaev

    (Varna University of Economics)

  • Viktoria Stancheva

    (Varna University of Economics)

Abstract

The present article analyzes the interrelation between foreign direct investment (FDI) and unemployment in Bulgaria. The paper outlines the state and the development of unemployment and the inflow of foreign direct investment for the period 1997-2012. The level of dependence has been researched by means of correlational and regression analysis. Feedback and high correlation have been found, and the phased regression model is established as the most suitable for describing the interdependence and future projections. The discovered relation can be used for the purpose of reducing the number of the unemployed in the country and several activities for encouraging investment and raising employment have been proposed.

Suggested Citation

  • Rosen Nikolaev & Viktoria Stancheva, 2013. "The effect of foreign direct investment on unemployment in Bulgaria," Business & Management Compass, University of Economics Varna, issue 2, pages 14-24.
    • Handle: RePEc:vrn:journl:y:2013:i:2:p:14-24
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    More about this item

    Keywords

    unemployment; foreign direct investment;

    JEL classification:

    • F02 - International Economics - - General - - - International Economic Order and Integration
    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics

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