Inward FDIS and Employment Relationship at The Peak of Globalization: An Analysis on Developing Countries
DOI:
https://doi.org/10.5281/zenodo.8330766Abstract
Globalization and the developments it brings are changing the economic problems of countries and, it is necessary to reconsider many economic phenomena that have been stabilized before. One of these economic phenomena is employment. Employment draws attention as one of the important issues associated with the welfare of the people in national economies. However, global developments affect people's ability to have a job or keep their current job as well as other economic phenomena. One way of creating employment, especially for the economies of developing countries, is through inward foreign direct investment (FDI). FDI is the money flows that come to the fore in the literature with their direct and indirect impact on employment. Today, it is known that there are employment discussions in developing countries, especially with the covid-19 pandemic. Based on this information, this study aims to examine the effect of FDI on employment in developing countries, especially in the 2000-2019 period when globalization reached its peak. In the study, the effect of foreign direct investments on unemployment rates in 23 developing countries that are in the middle-income group was analyzed by panel regression method. According to the estimation results, foreign direct investments in developing countries reduce unemployment rates.
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