Foreign Direct Investment and Job Creation in EU Regions

Fuente: arXiv
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Main Authors: Petreski, Marjan, Olczyk, Magdalena
Format: Preprint
Published: 2025
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author Petreski, Marjan
Olczyk, Magdalena
author_facet Petreski, Marjan
Olczyk, Magdalena
contents This study examines the impact of foreign direct investment (FDI) on job creation across 109 regions in the old EU member states from 2012 to 2023. Using dynamic and spatial econometric models combined with a unique dataset of FDI projects, we find that increased FDI inflows significantly enhance regional job creation, but the relationship is nonlinear. Sectoral specialization plays a crucial role, as more concentrated FDI inflows lead to higher employment growth. Furthermore, FDI-driven job creation exhibits significant spatial spillover effects. However, regions attracting high-value FDI jobs, such as those in R&D and management, tend to experience slower overall employment growth.
format Preprint
id arxiv_https___arxiv_org_abs_2503_23999
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Foreign Direct Investment and Job Creation in EU Regions
Petreski, Marjan
Olczyk, Magdalena
General Economics
Economics
This study examines the impact of foreign direct investment (FDI) on job creation across 109 regions in the old EU member states from 2012 to 2023. Using dynamic and spatial econometric models combined with a unique dataset of FDI projects, we find that increased FDI inflows significantly enhance regional job creation, but the relationship is nonlinear. Sectoral specialization plays a crucial role, as more concentrated FDI inflows lead to higher employment growth. Furthermore, FDI-driven job creation exhibits significant spatial spillover effects. However, regions attracting high-value FDI jobs, such as those in R&D and management, tend to experience slower overall employment growth.
title Foreign Direct Investment and Job Creation in EU Regions
topic General Economics
Economics
url https://arxiv.org/abs/2503.23999