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A VAR Analysis Of FDI And Wages: The Romania's Case

According to Lall (1997), the FDI are strongly interconnected with a series of variables, such as: economic conditions (markets, natural resources, competitiveness), host country policies (macro policies, private sector, trade and industry, FDI policies), as well as MNE strategy (risk perception, location, sourcing of products/inputs, integration transfer). Recent studies have shown that the relationship 'FDI-Wages' is significant and the two variables have one on one influence. More precisely, the low wages have the role to attract FDI and the high volume of FDI generates the increase of the wages on the destination's country labor market.

Provided by: West University of Timisoara Topic: CXO Date Added: Sep 2010 Format: PDF

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