An analysis of the impact of foreign investment on employment and wage levels across major industry groups in the Philippines
Date
2017
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
This paper used industry-level data over the 2010 to 2014 period to examine the impact of
approved foreign investment flows on the nineteen major industry groups in the country. Positive effects
are obtained in the employment level for the years covered and showed that there is a significant lagged
effect on employment level from running a system and dynamic generalized methods of moments (GMM)
regressions. Our findings also suggest that other labor economic measures, such as average daily pay and
work hours, exert a substantial impact on the industries’ employment levels. Furthermore, the study
showed that while there is a substantial impact of foreign investment flows on the employment, this alone
could not account for the overall increasing trend across the years.
Description
Keywords
foreign investment, employment, wage