Labour market competitiveness and foreign direct investment

The case of Malaysia, Thailand and the Philippines

Research output: Contribution to journalArticle

18 Citations (Scopus)

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.

Original languageEnglish
Pages (from-to)389-402
Number of pages14
JournalPapers in Regional Science
Volume82
Issue number3
DOIs
Publication statusPublished - Sep 2003

Fingerprint

foreign direct investment
direct investment
competitiveness
foreign investment
Philippines
labor market
Thailand
Malaysia
inflow
ASEAN
interest rate
labor force
wage
time series
expenditure
expenditures
economic development
determinants
regression
economy

Keywords

  • Foreign direct investment
  • Human capital
  • Labour force
  • Labour market competitiveness
  • Wage rate

ASJC Scopus subject areas

  • Environmental Science (miscellaneous)
  • Geography, Planning and Development

Cite this

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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.",
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AB - 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.

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