Abstract
The article aims to define the interconnection and interdependence of foreign direct investment (FDI) and labour productivity. The contributing factors of economic modernization, R&D spending, and production cost reduction to labour productivity growth are defined. The comparison analysis of FDI inflow, outflow, and labour productivity in the European Union countries is provided. The paper contributes to the empirical explanation of the relationship between labour productivity and FDI outflow and wage growth in certain sectors of the economy. The existence of higher wages in industries with a higher presence of joint venture foreign investments and industries with greater foreign participation was analysed. Greenfield investments are considered a stimulus for economic growth by the supply increase of both national and companies controllable by foreign proprietors. The sources of enhancing investment in R&D released by labour from economic sectors are proposed.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
