The Impact of FDI on the labor market in Central and Eastern Europe during the international crisis

Lenuta Carp ()
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Lenuta Carp: Alexandru Ioan Cuza University of Iasi

Review of Applied Socio-Economic Research, 2012, vol. 3, issue 1, 43-54

Abstract: One of the most important consequences of the economic and financial crisis is the record of negative growth rates and high rates of unemployment. FDI are widely recognized for their contribution on host country economic growth, therefore foreign capital inflows are considered a viable solution to reduce unemployment and stimulate economic growth. The aim of the paper is to review the main features of the labor market in Central and Eastern Europe countries, to analyze the dynamic of FDI flows in these countries and theoretically to present the effects of FDI on employment. The econometric analysis is conducted on the situation of Romania and emphasizes the negative relationship between FDI and unemployment.

Keywords: foreign direct investment; labor market; employment; unemployment; crisis (search for similar items in EconPapers)
JEL-codes: E22 F21 J21 J6 J82 (search for similar items in EconPapers)
Date: 2012
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