Capital outflow and unemployment: evidence from panel data

Mei-Yin Lin and Jue-Shyan Wang

Applied Economics Letters, 2008, vol. 15, issue 14, 1135-1139

Abstract: The effect of moving capital abroad on the domestic labour market is ambiguous. We examine the relation between capital outflow and unemployment with the use of panel data techniques. The result shows that in developing countries, the outward direct investment is beneficial to employment and the effect of portfolio investment abroad on domestic employment is negative. However, the association between outward investment and employment is insignificant in industrial countries.

Date: 2008
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DOI: 10.1080/13504850600993655

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