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| Tekijä: | Leibrecht, M. Scharler, J. |
| Otsikko: | How important is employment protection legislation for Foreign Direct Investment flows in Central and Eastern European countries? |
| Lehti: | Economics of transition
2009 : VOL. 17:2, p. 275-295 |
| Asiasana: | direct investment foreign investment central europe eastern europe labour markets employment protection |
| Kieli: | eng |
| Tiivistelmä: | This article empirically investigates the importance of labour market conditions and in particular the role of employment protection legislation as determinants of bilateral Foreign Direct Investment (FDI). The results indicate that FDI flows are significantly higher in countries with relatively low unit labour costs. It is also found that employment protection legislation does not exert a statistically significant impact on FDI flows. The results are consistent with the interpretation that transition economies attract FDI through low production costs. Indirect costs related to the rigidity of the labour market are less relevant. |
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