Labour market competitiveness and foreign direct investment: The case of Malaysia, Thailand and the Philippines

Rahmah Ismail () and Ishak Yussof ()

Papers in Regional Science, 2003, vol. 82, issue 3, 389-402

Abstract: This article investigates whether labour market competitiveness affects the inflows of foreign direct investment (FDI) into the ASEAN economies Malaysia, Thailand and the Philippines. The analysis is based on a regression model using time series data on FDI, wages, the labour force, skills, R&D expenditure, the interest rate and several variables critical for economic development. The study shows that the labour market determinants differ between countries in terms of their role in FDI inflows. Thus analysis results suggest that, with regard to labour market competitiveness, different countries may require different policy recommendations in order to attract FDI inflows into their countries. Copyright Springer-Verlag Berlin/Heidelberg 2003

Keywords: Labour market competitiveness; foreign direct investment; human capital; labour force; wage rate (search for similar items in EconPapers)
Date: 2003
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Persistent link: https://EconPapers.repec.org/RePEc:spr:presci:v:82:y:2003:i:3:p:389-402

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DOI: 10.1007/s10110-003-0170-2

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