Open AccessThe Effect of Foreign Direct Investment from Austria on Skilled and Unskilled Labor in Bosnia and Herzegovina
Author(s) -
Safet Kurtović,
Haris Dacić,
Sead Talović
Publication year - 2016
Publication title -
business and economic research
Language(s) - English
Resource type - Journals
ISSN - 2162-4860
DOI - 10.5296/ber.v6i1.8924
Subject(s) - foreign direct investment , economics , variables , investment (military) , labour economics , ordinary least squares , demographic economics , econometrics , macroeconomics , mathematics , political science , politics , law , statistics
Foreign direct investment (FDI) is considered a major factor in the process of a country's economic development. The presence of FDI in host countries has multiple effects on their economic development. One of these effects pertains to the change in organization and composition of labor market. With that in mind, this paper studies the effect of FDI inflow from Austria on the labor market in Bosnia and Herzegovina (B&H). It analyzes the time series data for the period 2005 - 2014. The research of the paper is divided into two parts. The first part studies the effect of certain independent variables on the increase in real average wages of skilled and unskilled labor. The second part examines the effect of certain independent variables on the increase in the number of skilled and unskilled workers. This paper applies the North-South Model and OLS Regression. The research has shown that the impact of the majority of independent variables on dependent variables is statistically significant.