Do GCC market-oriented labor policies encourage inward FDI flows?

Mina, Wasseem

doi:10.1016/j.ribaf.2019.101092

Cited by 12 publications

(10 citation statements)

References 71 publications

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“…The presence of these effects results in endogeneity and inconsistent ordinary least squares estimates. Accordingly, we employ the FEs model, which takes into account both unobserved country and time effects, comparable to recent FDI literature (e.g., Buckley et al, 2007 ; Mina, 2020 ). Of course, this analysis results in time-invariant factors, such as geographic distance and CD , to drop from the model.…”

Section: Sensitivity Analysismentioning

confidence: 99%

Institutional distance and Turkey’s outward foreign direct investment

Heavilin

Songur

2020

Research in International Business and Finance

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Section: Sensitivity Analysismentioning

confidence: 99%

Institutional distance and Turkey’s outward foreign direct investment

Heavilin

Songur

2020

Research in International Business and Finance

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“…The generous implicit social contract the GCC states have extended to its nationals is believed to have shaped their expectations and decisions to work. The social contract includes highly paid and protected government jobs as well unemployment benefits [3][4][5]. It also includes free education, health care, and child support.…”

Section: Social Contract and Labor Market Segmentationmentioning

confidence: 99%

“…2 As Table 1 shows, the total youth unemployment rate in 2007-2017 averaged 28.5 percent, 12.5 percent, and 11.9 percent in Saudi Arabia, Oman, and Kuwait, respectively. 3 In comparison, the rate amounted to 6.9 percent, 5.3 percent, and 1 percent in the UAE, Bahrain, and Qatar, respectively. 4 Compared to other high-income countries, the total youth unemployment rate in the GCC countries is lower.…”

Section: Introductionmentioning

confidence: 95%

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Youth Unemployment and Productivity-Pay in the GCC Countries

Mina¹

2022

Macroeconomic Analysis for Economic Growth

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Although the total youth unemployment rate in the Gulf Cooperation Council countries is less than in other high-income countries, the female youth unemployment rate is more than quadruple the male youth unemployment rate compared to equal rates in high-income countries. The gender bias in youth unemployment is attributable to the generous social contract GCC nationals enjoy as well as the largely conservative GCC culture that perceives a more important role of women in the household than in the job market. The generous social contract is also a key factor in the duality of the GCC labor markets with one segment for national labor and the other for foreign labor. Foreign labor constitutes most of the labor force, and the link between pay and productivity is strong in the foreign labor segment indicating labor market efficiency. This chapter investigates whether the presence of strong pay-productivity links in both labor market segments reduces the national youth unemployment rates in the GCC countries. Empirical evidence shows that linking pay to productivity robustly reduces the total and female youth unemployment rates. The influence is strongest on the female youth unemployment rate, however. Productivity-pay helps reduce youth unemployment and the associated gender bias.

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“…Therefore, regardless of the foreign investment type, the availability of proper infrastructure, enabling the production and distribution of products and services, is critical to foreign investors [11]. Following Kolstad and Wiig [34] and Mina [67], we employ mobile cellular subscriptions per 100 people to proxy for telecommunications infrastructure development.…”

Section: Control Variablesmentioning

confidence: 99%

Foreign Direct Investment, Natural Resources, Economic Freedom, and Sea-Access: Evidence from the Commonwealth of Independent States

Kasimov

Karimov

et al. 2020

Sustainability

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This study examines the importance of natural resources, economic freedom, and sea-access in attracting foreign direct investment (FDI) inflows to the Commonwealth of Independent States (CIS), using panel data from 1998 to 2017. The Prais-Winsten regression with panel-corrected standard errors (PCSEs) is employed for all estimations. Feasible Generalized Least Squares (FGLS), Random Effects with Driscoll-Kraay standard errors (RE (D-K)), and Random Effects of Generalized Least Squares (RE (GLS)) estimators are used to test the sensitivity of PCSEs’ estimates to changes in the underlying empirical model, whereas Instrumental Variables with Two Stage Least Squares (IV (2SLS)), Limited Information Maximum Likelihood (LIML), and Baltagi’s Two-Stage Least-Squares Random-Effects (IV (EC2SLS)) estimators are used to address potential endogeneity concerns. The estimates confirm that natural resources, economic freedom, and sea-access are robust and decisive factors affecting FDI location decisions of foreign investors in CIS. More precisely, the results suggest that increased revealed comparative advantage in petroleum, higher economic freedom characterized by the increased government size and open markets, and territorial coastlines have a statistically significant and positive effect on FDI inflows to CIS transition economies. We also find that direct access to the Black Sea and the Caspian Sea provides a significant geographic competitive advantage to Azerbaijan, Kazakhstan, Georgia, Russia, Turkmenistan, and Ukraine in attracting FDI inflows over the other CIS member-states.

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Do GCC market-oriented labor policies encourage inward FDI flows?

Cited by 12 publications

References 71 publications

Institutional distance and Turkey’s outward foreign direct investment

Institutional distance and Turkey’s outward foreign direct investment

Youth Unemployment and Productivity-Pay in the GCC Countries

Foreign Direct Investment, Natural Resources, Economic Freedom, and Sea-Access: Evidence from the Commonwealth of Independent States

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