Effects of labor market flexibility on foreign direct investment: China evidence

Junxian Liu and Zhaoying Guo

Finance Research Letters, 2023, vol. 53, issue C

Abstract: This paper selects 27 segments of China's manufacturing industry as research objects, and uses panel data of 2001–2011 years as the basis for an empirical test. The results show that the labor market flexibility influence the FDI inflows of manufacturing industry through cost channels and productivity channels respectively, and whether it promote or hinder FDI inflows of manufacturing industry is the results of joint action of the two channels.

Keywords: FDI; Manufacturing; Employment protection indicators; Labor market flexibility (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:53:y:2023:i:c:s1544612322007504

DOI: 10.1016/j.frl.2022.103574

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