Review

FDi and Employment in D8 Countries

Mohammadreza Mohammadvand Nahidi and *Arash Ketabforoush Badri

Department of Economic, Tabriz Branch, Islamic Azad University, Tabriz, Iran

*Corresponding Author's E-mail: arashkbadri@gmail.com; Mobile: +98-09148059607

Accepted March 31, 2014

Abstract

Employment is one of the most important factors affecting the economy. Furthermore, in economic research, analysis of macroeconomic variables on the labor market is of particular importance. Any country seeking to increase their labor force to increase employment generation and economic growth, Because of increased production and economic growth rate of revenue increases and increasing labor productivity and increased investment which it will increase social welfare. In other words employment and workforce are important tool for progress and development countries. Employment, such as the social and economic variables, which can be affected by many factors such as FDI, production level and Inflation. This paper investigates the relationship between FDI and employment in 6 countries of D8 group in the period 2002-2010 by using panel data. The results show that FDI has a significant positive effect on employment. Also the gross capital formation and inflation respectively have positive and negative impact on employment in studied countries.

Keywords: FDI, employment, panel data, D8 countries.
JEL Classification: C23, E24, F10.