Original scientific paper

https://doi.org/10.1080/1331677X.2020.1761418

Capital flows impact on labor market: how do FDIs and remittances effect youth employment in Bosnia and Herzegovina?

Bojan Baškot orcid.org/0000-0002-6509-7507

Abstract

This paper addresses the impact of Foreign Direct Investments
and remittances as capital flows on the employment. The focus of
the analysis is how impacts of those two can be measurable and
comparable if we have total employment on one side and youth
employment on the other side. Sign restricted VAR is used as a
framework to see how employment reacts to capital flow shocks.
Total and youth employment reacts positively in both cases.
Overall importance of remittance as a factor that maintains fragile
macroeconomic balance should not be neglected. Similarity of
impact on employment in impulse-response framework for remittances
and FDIs indicates the similarity of the channels of transmission.
This research represents confirmation of doubt that FDIs
are not so significant in terms of total technological and human
capital spillover in current setting in Bosnia and Herzegovina

Keywords

Bayesian inference; sign restricted VAR; IRF

Hrčak ID:

254626

URI

https://hrcak.srce.hr/254626

Publication date:

9.2.2021.

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