خلاصة:
This paper focuses on two major aspects of globalization: international trade and FDI and their impacts on manufacturing employment in Iran and study whether foreign direct investment and trade expansion with Asian and European partner played any role in shaping the Iranian manufacturing employment structure.
This study incorporates globalization (KOF index), trade integration and FDI into a single model and uses a system GMM estimator, which is more appropriate for a short panel dataset than the static or first differenced GMM estimator.
Result show that foreign direct investment corresponds positively to Iran’s manufacturing employment in both Asian and European trade partner. The findings show that globalization in Iran and Asian partner has no significant impact on employment. In terms of trade expansion, the role of bilateral exports with European partner is stronger than Asian partner.
ملخص الجهاز:
The Effects of Trade Integration, Globalization and Foreign Direct Investments on Employment in Iranian Manufacturing Sector Monireh Rafat*1 Received: 2017, August 15 Accepted: 2017, November 5 Abstract his paper focuses on two major aspects of globalization:international trade and FDI and their impacts on manufacturing employment in Iran and study whether foreign direct investment and trade expansion with Asian and European partner played any role in shaping the Iranian manufacturing employment structure.
The FDI have the potential to generate employment through direct hiring of people for plants, which means they improve aggregate domestic employment through types of jobs created, regional distribution of new employment, wage levels, income distribution and skill transfer (Mickiewicz, Radosevic and Varblane (2000).
Domestic firms in the host country that are vertically linked to foreign controlled entity, such as suppliers, subcontractors, consultants and buyers, are likely to see a positive effect on employment when the investment increases the demand for local inputs.
Komijani and Ghavidel (2006), analyses one of the effects of the economic Globalization process that is the inflow of foreign direct investment on the employment of the sub-sectors of the service sector in Iran.
The real-state and small business actives have the first rank in employing the skilled labor and improving the ratio of skilled over unskilled labor Jenkins (2006), consider the impact of foreign direct investment on employment in Viet Nam, a country that received considerable inflows of foreign capital in the 1990s as part of its increased integration with the global economy.