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Studies on Balkan and Near Eastern Social Sciences

Edited By Rasim Yilmaz and Günther Löschnigg

This volume is a collection of empirical and theoretical research papers in the social sciences regarding the Balkans and the Near East written by researchers from several different universities and institutions. The studies include a wide range of topics from economic, financial, political, agricultural, sociological, international relations to historical, cultural, and feminist issues in the region of the Balkan and Near East. The book is aimed at educators, researchers, and students interested in the Balkan and Near Eastern countries.

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The Relationship between Foreign Direct Investment and Employment: The Case of the Balkan Countries (Nuri Baltaci / Bilal Kargi / Gülçin H. Beken / Zekai Özdemir)

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Nuri Baltaci1, Bilal Kargi2, Gülçin H. Beken3 and Zekai Özdemir4

The Relationship between Foreign Direct Investment and Employment: The Case of the Balkan Countries5

Introduction

The result of Feldstein and Horioka’s studies (1980) is that the majority of savings are prone to be kept within a country as disagrees with the hypothesis of indefinite capital movement throughout the world and gave rise to the discussion in the related literature. The study results increased the interest in the financial integration and financial openness degree among countries so that direct foreign capital movements attracted more importance. Following the globalization and financial liberalization movements, a new period in which capital movements dramatically increased was started. Globalization and capital movements gained an important degree of acceleration in global manners after the Cold War period. The interest shifted to developing economies in which the return on capital might be higher and to the regions which offer a cheaper labor force following financial freedom (Sever at. all., 2010). After the year of 1990, planned economies which are also known as transition economies are transferred to free market economies and this increased the international product and service movements. Capital movements offer facilities to eliminate insufficient saving and investment shortage being one of the most important problems of developing countries. The importance of direct foreign investments steadily increased in developing countries parallel to the fact that borrowing from international markets was hardened. The shortage in investment and...

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