Wage implications of FDIs in Slovakia and Slovenia on post-communist emerging markets

Ionel Sergiu Pîrju, Ioan Gina, Carmen Sirbu, Carmen Nastase, Tincuța Vrabie

Article ID: 9385
Vol 8, Issue 12, 2024

VIEWS - 31 (Abstract) 9 (PDF)

Abstract


This study investigates the impact of Foreign Direct Investments (FDIs) on wage dynamics in Slovakia and Slovenia, with a particular emphasis on gender-specific effects in post-Communist emerging markets. By analyzing wage outcomes for male and female workers separately, the research reveals potential disparities in FDIs-driven wage growth. Employing econometric techniques and longitudinal data, the study explores the nuanced relationship between FDIs, wage policies, and economic development over time. A temporal lag in FDIs analysis suggests that Slovakia and Slovenia have experienced differing impacts from past foreign capital flows. In Slovakia, significant correlations indicate persistent FDIs influence and a pronounced effect on gender wage disparities. In Slovenia, more moderate correlations and FDIs volatility suggest a less stable relationship between external investment and wage dynamics. The originality of this research lies in its comparative approach, examining two distinct post-Communist nations and identifying unique country-specific patterns and trends. This study contributes to a deeper understanding of FDI’s role in labor market management and its implications for gender equality in two European emerging economies.


Keywords


FDIs; wages; gender equality; emerging economies; labor force

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DOI: https://doi.org/10.24294/jipd.v8i12.9385

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