The need of a new management regarding the contradictory East-West European capital and labour flows. A regional welfare approach
Abstract
The paper addresses an extremely current phenomenon: migration in opposite directions of FDI and labour, in context with the permanent need for economic growth and welfare. The analysis is carried out over a period of 12 years, in the context of setting objectives and working hypotheses regarding the realization of a correlation model of phenomena and optimization of migration flows in order to obtain welfare through economic development. The results of the research will reflect the relevance of the aggregation of the two migratory flows (FDI and labour) in order to obtain the financial leverage effect and the economic welfare in the analysed regions (EU, Germany and Romania).The conclusions of the study reflect the relevance of the method, the validity of the model and its relevance for the decision forums interested in the economic development and in increasing the population welfare.
First published online 04 March 2022
Keyword : Foreign Direct Investment, labour flows, optimal area of intersection, economic growth, development, labour welfare, migration flows
How to Cite
Ionescu, R. V., Zlati, M. L., & Antohi, V. M. (2022). The need of a new management regarding the contradictory East-West European capital and labour flows. A regional welfare approach. Technological and Economic Development of Economy, 28(3), 583–610. https://doi.org/10.3846/tede.2022.16325
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Alamá-Sabater, L., Heid, B., Jiménez-Fernández, E., & Márquez-Ramos, L. (2017). FDI in Space revisited: The role of spillovers on Foreign Direct Investment within the European Union. Growth and Change, 48(3), 390–408. https://doi.org/10.1111/grow.12173
Antonescu, D. (2015). Empirical analysis of Foreign Direct Investments at NUTS 2 region, in European Union and Romania. Procedia Economics and Finance, 22, 681–689. https://doi.org/10.1016/S2212-5671(15)00284-1
Baškot, B. (2020). Capital flows impact on labor market: how do FDIs and remittances effect youth employment in Bosnia and Herzegovina? Economic Research-Ekonomska Istraživanja, 33(1), 2633–2647. https://doi.org/10.1080/1331677X.2020.1761418
Boghean, C., & State, M. (2015). The relation between Foreign Direct Investments (FDI) and labour productivity in the European Union Countries. Procedia Economics and Finance, 32, 278–285. https://doi.org/10.1016/S2212-5671(15)01392-1
Bolívar, L. M., Casanueva, C., & Castro, I. (2019). Global Foreign Direct Investment: A network perspective. International Business Review, 28(4), 696–712. https://doi.org/10.1016/j.ibusrev.2019.01.007
Bruno, R. L., Campos, N. F., Estrin, S., & Tian, M. (2017). Foreign Direct Investment and the relationship between the United Kingdom and the European Union. In N. F. Campos & F. Coricelli (Eds.), The economics of UK-EU relations: From the treaty of Rome to the vote for Brexit (pp. 139–173). Springer International Publishing. https://doi.org/10.1007/978-3-319-55495-2_6
Bruno, R. L., & Cipollina, M. (2018). A meta-analysis of the indirect impact of foreign direct investment in old and new EU member states: Understanding productivity spillovers. The World Economy, 41(5), 1342–1377. https://doi.org/10.1111/twec.12587
Camarero, M., Gómez-Herrera, E., & Tamarit, C. (2018). New evidence on trade and FDI: How large is the Euro Effect? Open Economies Review, 29(2), 451–467. https://doi.org/10.1007/s11079-018-9479-y
Campos, N. F., & Coricelli, F. (2017). The economics of UK-EU relations: From the treaty of Rome to the vote for Brexit. Springer International Publishing. https://doi.org/10.1007/978-3-319-55495-2
Comes, C.-A., Bunduchi, E., Vasile, V., & Stefan, D. (2018). The impact of Foreign Direct Investments and remittances on economic growth: A case study in Central and Eastern Europe. Sustainability, 10(1). https://doi.org/10.3390/su10010238
Delevic, U., & Heim, I. (2017). Institutions in transition: Is the EU integration process relevant for inward FDI in transition European economies? Eurasian Journal of Economics and Finance, 5, 16–32. https://doi.org/10.15604/ejef.2017.05.01.002
Dellis, K., Sondermann, D., & Vansteenkiste, I. (2017). Determinants of FDI inflows in advanced economies: Does the quality of economic structures matter? European Central Bank (ECB), https://doi.org/10.2139/ssrn.2990996
Dhingra, S., Ottaviano, G., Rappoport, V., Sampson, T., & Thomas, C. (2018). UK trade and FDI: A post-Brexit perspective. Papers in Regional Science, 97(1), 9–24. https://doi.org/10.1111/pirs.12345
Ebell, M., Hurst, I., & Warren, J. (2016). Modelling the long-run economic impact of leaving the European Union. Economic Modelling, 59, 196–209. https://doi.org/10.1016/j.econmod.2016.06.020
European Commission. (2019a). EU Foreign Direct Investment flows in 2018. https://ec.europa.eu/eurostat/web/products-eurostat-news/-/DDN-20190717-1?inheritRedirect=true&redirect=%2Feurostat%2F
European Commission. (2019b). European Economic Forecast. Spring 2014 (Luxembourg Publications Office, Ed., Spring 2014, Vol. 3217). European Economy Institutional Papers.
European Parliament. (2018). Migration and asylum: A challenge for Europe. http://www.europarl.europa.eu/RegData/etudes/PERI/2017/600414/IPOL_PERI(2017)600414_EN.pdf
Hanclova, J., Doucek, P., Fischer, J., & Vltavska, K. (2015). Does ICT capital affect economic growth in the EU-15 and EU-12 countries? Journal of Business Economics and Management, 16(2), 387–406. https://doi.org/10.3846/16111699.2012.754375
Josifidis, K., Supic, N., Pucar, E. B., & Srdic, S. (2014). Labour migration flows: EU8+2 vs EU-15. Journal of Business Economics and Management, 15(1), 41–55. https://doi.org/10.3846/16111699.2013.841283
Lazutka, R., Juška, A., & Navickė, J. (2018). Labour and capital under a neoliberal economic model: Economic growth and demographic crisis in Lithuania. Europe-Asia Studies, 70(9), 1433–1449. https://doi.org/10.1080/09668136.2018.1525339
Lewandowska, A., & Stopa, M. (2020). The impact of innovative professional qualifications on the sense of employment security: Evidence from Poland. Economics and Sociology, 13, 72–83. https://doi.org/10.14254/2071-789X.2020/13-3/5
Martínez-San Román, V., Bengoa, M., & Sánchez-Robles, B. (2016). Foreign direct investment, trade integration and the home bias: Evidence from the European Union. Empirical Economics, 50(1), 197–229. https://doi.org/10.1007/s00181-015-0942-y
Meunier, S. (2017). Integration by stealth: How the European Union gained competence over Foreign Direct Investment. JCMS: Journal of Common Market Studies, 55(3), 593–610. https://doi.org/10.1111/jcms.12528
Mihi-Ramirez, A., Arteaga-Ortíz, J., & Ojeda-González, S. (2019). The international movements of capital and labour: A study of Foreign Direct Investment and migration flows. Entrepreneurial Business and Economics Review, 7(3), 143–160. https://doi.org/10.15678/EBER.2019.070308
Paul, J., & Feliciano-Cestero, M. M. (2021). Five decades of research on foreign direct investment by MNEs: An overview and research agenda. Journal of Business Research, 124, 800–812. https://doi.org/10.1016/j.jbusres.2020.04.017
Paunica, M., Manole, A., Motofei, C., & Tanase, G. L. (2018). The globalization in the actual context of the European Union economy. Proceedings of the International Conference on Business Excellence, 12(1), 739–750. https://doi.org/10.2478/picbe-2018-0066
Pegkas, P. (2015). The impact of FDI on economic growth in Eurozone countries. The Journal of Economic Asymmetries, 12(2), 124–132. https://doi.org/10.1016/j.jeca.2015.05.001
Pradhan, R., Arvin, M. B., Bahmani, S., & Hall, J. H. (2019). Attaining economic growth through financial development and foreign direct investment. Journal of Economic Studies, 46(6), 1201–1223. https://doi.org/10.1108/JES-04-2018-0136
Raza, S. (2015). Foreign Direct Investment, workers’ remittances and private savings in Pakistan: An ARDL bound testing approach. Journal of Business Economics and Management. 16(6), 1216–1234. https://doi.org/10.3846/16111699.2013.792867
Rong, S., Liu, K., Huang, S., & Zhang, Q. (2020). FDI, labor market flexibility and employment in China. China Economic Review, 61, 101449. https://doi.org/10.1016/j.chieco.2020.101449
Schwab, K. (2018). The Global Competitiveness Report 2018. World Economic Forum.
Serban, A. C., Aceleanu, M., Dospinescu, A., Tirca, D.-M., & Novo-Corti, M. I. (2020). The impact of EU immigration on economic growth through the skill composition channel. Technological and Economic Development of Economy, 26(2), 479–503. https://doi.org/10.3846/tede.2020.11954
Simionescu, M. (2016). The relation between economic growth and foreign direct investment during the economic crisis in the European Union. Zbornik Radova Ekonomskog Fakulteta u Rijeci / Proceedings of Rijeka School of Economics, 34. https://doi.org/10.18045/zbefri.2016.1.187
Tan, B. W., Goh, S. K., & Wong, K. N. (2016). The effects of inward and outward FDI on domestic investment: Evidence using panel data of ASEAN–8 countries. Journal of Business Economics and Management, 17(5), 717–733. https://doi.org/10.3846/16111699.2015.1114515
Tang, D. (2017). The determinants of European Union (EU) Foreign Direct Investments in the EU countries from Central and Eastern Europe during 1994–2012. Comparative Economic Research. Central and Eastern Europe, 20(1), 75–99. https://doi.org/10.1515/cer-2017-0005
Tombe, T., & Zhu, X. (2019). Trade, migration, and productivity: A quantitative analysis of China. American Economic Review, 109(5), 1843–1872. https://doi.org/10.1257/aer.20150811
Yavas, B. F., & Malladi, R. K. (2020). Foreign direct investment and financial markets influences: Results from the United States. The North American Journal of Economics and Finance, 53, 101182. https://doi.org/10.1016/j.najef.2020.101182