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A panel data analysis of FDI and informal labour markets
Author(s) -
BaezMorales Antonio
Publication year - 2021
Publication title -
bulletin of economic research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.227
H-Index - 29
eISSN - 1467-8586
pISSN - 0307-3378
DOI - 10.1111/boer.12251
Subject(s) - panel data , foreign direct investment , economics , developing country , affect (linguistics) , stock (firearms) , sample (material) , labour economics , econometric analysis , demographic economics , econometrics , macroeconomics , economic growth , engineering , mechanical engineering , linguistics , philosophy , chemistry , chromatography
The objective of this paper is to examine whether informal labour markets affect the stock of Foreign Direct Investment (FDI) and also whether this effect is similar in developed and developing countries. Panel econometric models are estimated for a sample of 65 countries over a 10‐year period (1999–2007). While the results show that informal labour markets are significant and do positively affect FDI, they do so more for developing countries than developed countries and are robust to several checks.