FDI and unemployment in ASEAN

RECENT TRENDS IN MANAGEMENT

Editors-Wendrila Biswas and Dr.Debarun Chakraborty

Associate Editor-Soumya Kanti Dhara

ABHIJEET PUBLICATION,NEWDELHI-110002,www.abhijeetpublications.com

Price-1430/- , page-283+

The book contains 24 articles explaining human resource issues and practices,digital marketing,stock market,foreign direct investment,financial performance of companies,gender studies,and so on.

My article:

Dr.Debesh Bhowmik-The Nexus  between foreign direct investment inflows and unemployment rate in ASEAN:Panel data analysis.pp 62-76

Abstract

The Nexus between Foreign Direct Investment Inflows and Unemployment Rate in ASEAN:Panel Data Analysis

Dr.DebeshBhowmik (Former Principal and Associated with Lincoln University College,Malaysia)

Abstract

In this paper,the author attempted to show the econometric relationship between the unemployment rate and foreign direct investment inflows of the ASEAN-10 during 1991-2017 through panel regression model,panelcointegration test and panel vector error correction model. The paper concludes that one per cent increase in foreign direct investment per year led to 0.0442 per cent decrease in unemployment rate per year significantly.The foreign direct investment inflows and unemployment rate is cointegrated. There is long run causality between unemployment rate and foreign direct investment inflows in ASEAN-10 during 1991-2017.But there is no short run and long run causality from FDI inflows to unemployment rate.

Key Words- Foreign direct investment inflows,unemploymentrate,panelcointegration,panel vector error correction,short run causality,long run causality

JEL Classification Codes-C22,E24,F21

Conclusion

The paper concludes that one per cent increase in foreign direct investment per year led to 0.0442 per cent decrease in unemployment rate per year significantly in ASEAN during 1991-2017.The foreign direct investment inflows and unemployment rate is cointegrated.There is long run causality between unemployment rate and foreign direct investment inflows in ASEAN-10 during 1991-2017.But there is no short run and long run causality from FDI inflows to unemployment rate in ASEAN-10.Although the vector error correction model is stable and nonstationary.