International evidence on the relationship between Foreign Direct Investment, labour market flexibility, and economic growth

The study investigates the interconnected dynamics among flexible labor markets, economic growth, and foreign direct investment (F across a sample of 123 countries. Foreign direct investment has experienced steady growth and has surged significantly, emerging as a key driver of economic growth acros...

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Main Authors: Imam, Muhammad Asim, W Azman-Saini, W. N., Ibrahim, Saifuzzaman, W. Mohamad, Wan Norhidayah, Shafiq, Ume Salma
Format: Article
Language:English
Published: Human Resource Management Academic Research Society 2024
Online Access:http://psasir.upm.edu.my/id/eprint/119744/
http://psasir.upm.edu.my/id/eprint/119744/1/119744.pdf
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author Imam, Muhammad Asim
W Azman-Saini, W. N.
Ibrahim, Saifuzzaman
W. Mohamad, Wan Norhidayah
Shafiq, Ume Salma
author_facet Imam, Muhammad Asim
W Azman-Saini, W. N.
Ibrahim, Saifuzzaman
W. Mohamad, Wan Norhidayah
Shafiq, Ume Salma
author_sort Imam, Muhammad Asim
building UPM Institutional Repository
collection Online Access
description The study investigates the interconnected dynamics among flexible labor markets, economic growth, and foreign direct investment (F across a sample of 123 countries. Foreign direct investment has experienced steady growth and has surged significantly, emerging as a key driver of economic growth across both developing and developed countries. Utilizing the generalized method-of-moments (GMM) system model, the empirical findings highlight that a flexible labor market (FLM) significantly enhances the positive impact of FDI on economic growth. Various FDI measures are analyzed to ensure robust findings; this indicates that the marginal effect of FDI on economic growth is highly contingent upon the flexibility of the labor market. Countries with deregulated Labour markets experience greater benefits from FDI inflows. The evidence indicates that certain factors within the host country, precisely labour market policies, perform a crucial role in enhancing the growth impact of FDI.
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spelling upm-1197442025-09-08T09:33:11Z http://psasir.upm.edu.my/id/eprint/119744/ International evidence on the relationship between Foreign Direct Investment, labour market flexibility, and economic growth Imam, Muhammad Asim W Azman-Saini, W. N. Ibrahim, Saifuzzaman W. Mohamad, Wan Norhidayah Shafiq, Ume Salma The study investigates the interconnected dynamics among flexible labor markets, economic growth, and foreign direct investment (F across a sample of 123 countries. Foreign direct investment has experienced steady growth and has surged significantly, emerging as a key driver of economic growth across both developing and developed countries. Utilizing the generalized method-of-moments (GMM) system model, the empirical findings highlight that a flexible labor market (FLM) significantly enhances the positive impact of FDI on economic growth. Various FDI measures are analyzed to ensure robust findings; this indicates that the marginal effect of FDI on economic growth is highly contingent upon the flexibility of the labor market. Countries with deregulated Labour markets experience greater benefits from FDI inflows. The evidence indicates that certain factors within the host country, precisely labour market policies, perform a crucial role in enhancing the growth impact of FDI. Human Resource Management Academic Research Society 2024-08-15 Article PeerReviewed text en cc_by_4 http://psasir.upm.edu.my/id/eprint/119744/1/119744.pdf Imam, Muhammad Asim and W Azman-Saini, W. N. and Ibrahim, Saifuzzaman and W. Mohamad, Wan Norhidayah and Shafiq, Ume Salma (2024) International evidence on the relationship between Foreign Direct Investment, labour market flexibility, and economic growth. International Journal of Academic Research in Economics and Management Sciences, 13 (3). pp. 230-251. ISSN 2226-3624 https://hrmars.com/index.php/IJAREMS/article/view/22393/International-Evidence-on-the-Relationship-between-Foreign-Direct-Investment-Labour-Market-Flexibility-and-Economic-Growth 10.6007/ijarems/v13-i3/22393
spellingShingle Imam, Muhammad Asim
W Azman-Saini, W. N.
Ibrahim, Saifuzzaman
W. Mohamad, Wan Norhidayah
Shafiq, Ume Salma
International evidence on the relationship between Foreign Direct Investment, labour market flexibility, and economic growth
title International evidence on the relationship between Foreign Direct Investment, labour market flexibility, and economic growth
title_full International evidence on the relationship between Foreign Direct Investment, labour market flexibility, and economic growth
title_fullStr International evidence on the relationship between Foreign Direct Investment, labour market flexibility, and economic growth
title_full_unstemmed International evidence on the relationship between Foreign Direct Investment, labour market flexibility, and economic growth
title_short International evidence on the relationship between Foreign Direct Investment, labour market flexibility, and economic growth
title_sort international evidence on the relationship between foreign direct investment, labour market flexibility, and economic growth
url http://psasir.upm.edu.my/id/eprint/119744/
http://psasir.upm.edu.my/id/eprint/119744/
http://psasir.upm.edu.my/id/eprint/119744/
http://psasir.upm.edu.my/id/eprint/119744/1/119744.pdf