Document Type : ORIGINAL ARTICLE

Authors

• Mahdi Fadaee
• Shayesteh Kazemi

Abstract

One of the ways to create jobs is increasing the capacities of jobs through new investments. The aim of  this research is to analyze the effects of foreign direct investment (FDI) on job creation in Iran. Thus, 1970-2010 statistical data have been used to survey the relationship between foreign direct investment and employment in a theoretical and experimental frame. By specifying an econometric model, the relations between the variables have been estimated by ARDL model. The results of research show that, foreign direct investment directly and meaningfully influences the economic growth to the extent that it improves the process of job creation opportunities in short run (0.1286) and long run (0.1261). Error correction coefficient (ECM) obtained in this model shows that in each period 10/2 percent of inequelibrium will justify and close to the long run imbalances. CUSUM and CUSUMSQ structural stability tests show that the estimated coefficients are stable over the period. 

Keywords

• Forign Direct Investment (FDI)
• Economic Growth
• employment
• ARDL model