Publication:
Do Foreign Investors Care About Labor Market Regulations?

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dc.contributor.authorSpartareanu, Mariana
dc.contributor.authorSmarzynska Javorcik, Beata
dc.date.accessioned2013-07-01T15:11:44Z
dc.date.available2013-07-01T15:11:44Z
dc.date.issued2004-04
dc.description.abstractThe authors take a new look at the regulatory determinants of foreign direct investment (FDI) by asking whether labor market flexibility affects FDI flows across 25 Western and Eastern European countries. Their analysis is based on firm level data on new investments during the 1999-2001 period. The authors employ a variety of labor market flexibility measures that capture different aspects of labor laws along with a comprehensive set of controls for business climate characteristics. Indices of labor market regulations reflect the flexibility of individual and collective dismissals, the length of the notice period, and the required severance payment. The results suggest that greater flexibility in the host country's labor market relative to that in the investor's home country is associated with larger FDI inflows, and this effect is found to be stronger in the case of transition economies. The findings indicate that as the labor market flexibility in the host country increases from inflexible (for example, Slovakia) to flexible (for example, Hungary), the volume of investment increases by between 14 and 18 percent. FDI in service sectors appears to be more affected than investments in manufacturing.en
dc.identifierhttp://documents.worldbank.org/curated/en/2004/04/3565779/foreign-investors-care-labor-market-regulations
dc.identifier.doi10.1596/1813-9450-3275
dc.identifier.urihttps://hdl.handle.net/10986/14298
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, D.C.
dc.relation.ispartofseriesPolicy Research Working Paper;No.3275
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectABATEMENT COSTS
dc.subjectACCOUNTING
dc.subjectCAPITAL FLOWS
dc.subjectCORRUPTION
dc.subjectDEVELOPMENT INDICATORS
dc.subjectECONOMIC ACTIVITY
dc.subjectECONOMIC PERSPECTIVES
dc.subjectECONOMIC REVIEW
dc.subjectEMPIRICAL ANALYSIS
dc.subjectEMPLOYMENT
dc.subjectENVIRONMENTAL STANDARDS
dc.subjectEXCHANGE RATE
dc.subjectFOREIGN DIRECT INVESTMENT
dc.subjectFOREIGN EXCHANGE
dc.subjectFOREIGN EXCHANGE CONTROLS
dc.subjectFOREIGN FIRMS
dc.subjectFOREIGN INVESTMENT
dc.subjectFOREIGN INVESTORS
dc.subjectFOREIGN OWNERSHIP
dc.subjectFOREIGN SUBSIDIARIES
dc.subjectFOREIGN SUBSIDIARY
dc.subjectGOVERNANCE INDICATORS
dc.subjectGOVERNMENT REGULATIONS
dc.subjectINTELLECTUAL PROPERTY
dc.subjectINTELLECTUAL PROPERTY RIGHTS
dc.subjectINTERMEDIATE INPUTS
dc.subjectINTERNATIONAL ECONOMICS
dc.subjectINTERNATIONAL INVESTMENT
dc.subjectINTERNATIONAL TRADE
dc.subjectINVESTMENT CLIMATE
dc.subjectINVESTMENT FLOWS
dc.subjectINVESTMENT INCENTIVES
dc.subjectINVESTMENT INFLOWS
dc.subjectINVESTMENT LOCATION
dc.subjectLABOR COSTS
dc.subjectLABOR MARKET
dc.subjectLABOR MARKET FLEXIBILITY
dc.subjectLABOR MARKET REGULATIONS
dc.subjectLABOR MARKET RIGIDITIES
dc.subjectLABOR MARKETS
dc.subjectLAWS
dc.subjectLEGISLATION
dc.subjectMARKET SIZE
dc.subjectMULTINATIONAL COMPANIES
dc.subjectPOLICY RESEARCH
dc.subjectPOLLUTION
dc.subjectPOLLUTION ABATEMENT
dc.subjectPROPERTY RIGHTS
dc.subjectSUBSIDIARIES
dc.subjectSUBSIDIARY
dc.subjectTAX RATE
dc.subjectTAX RATES
dc.subjectTAXATION
dc.subjectTRANSITION COUNTRIES
dc.subjectTRANSITION ECONOMIES
dc.subjectTRANSPARENCY FOREIGN DIRECT INVESTMENT
dc.subjectLABOR MARKETS
dc.subjectFOREIGN INVESTORS
dc.subjectINVESTORS
dc.subjectLABOR LAWS
dc.subjectLABOR REGULATIONS
dc.subjectBUSINESS FINANCING
dc.subjectLABOR INFORMATION
dc.subjectCOLLECTIVE ACTIONS
dc.subjectSEVERANCE PAYMENTS
dc.subjectTRANSITION ECONOMIES
dc.subjectSERVICES
dc.titleDo Foreign Investors Care About Labor Market Regulations?en
dspace.entity.typePublication
okr.crosscuttingsolutionareaJobs
okr.crossref.titleDo Foreign Investors Care about Labor Market Regulations?
okr.date.doiregistration2025-04-10T09:47:06.193076Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2004/04/3565779/foreign-investors-care-labor-market-regulations
okr.globalpracticeSocial, Urban, Rural and Resilience
okr.globalpracticeGovernance
okr.globalpracticeSocial Protection and Labor
okr.globalpracticeGovernance
okr.globalpracticeTrade and Competitiveness
okr.guid197251468781804079
okr.identifier.doi10.1596/1813-9450-3275
okr.identifier.externaldocumentum000009486_20040520093807
okr.identifier.internaldocumentum3565779
okr.identifier.reportWPS3275
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2004/05/20/000009486_20040520093807/Rendered/PDF/wps3275regulations.pdfen
okr.topicInternational Economics and Trade::Trade and Regional Integration
okr.topicBanks and Banking Reform
okr.topicEnvironmental Economics and Policies
okr.topicHealth Economics and Finance
okr.topicSocial Protections and Labor::Labor Policies
okr.topicSocial Protections and Labor::Labor Markets
okr.topicGovernance::National Governance
okr.topicUrban Development::Municipal Financial Management
okr.topicHealth
okr.topicNutrition and Population
okr.unitOff of Sr VP Dev Econ/Chief Econ (DECVP)
okr.volume1 of 1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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