THE IMPACT OF FOREIGN DIRECT INVESTMENT ON UNEMPLOYMENT: EXAMPLE OF BRIC-T COUNTRIES

Abstract

The most important benefits of the foreign direct investment (FDI) to the labor markets of the developing countries are to increase employment and enhance its quality. The impact of the FDI on employment differs according to the level of investment, the host country, the invested sector and the purpose of the investment. The aim of this study is to explain the impact of FDI on employment in the developing countries, BRIC-T using panel cointegration analysis. As a result of the analysis, 19.7% positive long-term relation between DDY and unemployment was determined. In addition, the DDY variable was obtained as the Granger cause of the ISZ.