Foreign Direct Investment and Unemployment: VAR Analysis for Poland in the Years 1995-2009 | Zendy

Adam Adam | Zendy; Mirosława Żurek | Zendy

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Foreign Direct Investment and Unemployment: VAR Analysis for Poland in the Years 1995-2009

Author(s) -

Adam Adam,

Mirosława Żurek

Publication year - 2011

Publication title -

european research studies journal

Language(s) - English

Resource type - Journals

ISSN - 1108-2976

DOI - 10.35808/ersj/306

Subject(s) - foreign direct investment , economics , beneficiary , globalization , unemployment , government (linguistics) , developing country , financial crisis , corporation , market economy , economic system , international economics , development economics , finance , macroeconomics , economic growth , linguistics , philosophy

The paper is devoted to the influence of foreign direct investment on labour markets. The interdependencies between FDI and unemployment were econometrically analyzed in Poland. In the research the VAR methodology was utilized based on aggregate quarterly data. The VAR analysis for the period 1995-2009 have proved interdependencies between FDI and employment in Poland. FDI impulse leads to decreasing of unemployment rate. However, the positive influence of FDI on Polish labour market tend be rather short term. It can suggest that government policies designed for encouraging FDI investment should be reformed in order to make conditions for positive long term influence of foreign capital inflow on Polish labour market.

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