Date

4-2009

Degree

Bachelor of Science in Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Anna Floresca F. Abrina

Abstract

Foreign Direct Investment (FDI) has been an important factor in the globalization of the international economy. It has also been regarded as a good channel for capital formation and shows potential for economic growth. Employment, being one of the indicators of economic health, was examined by this paper. The FDI Stage-Based model was used to determine the current stage the Philippines is in. The model revealed that the country is probably in the third stage and is used as an export platform of goods and services. The Ridge Regression Analysis was done to assess the effects of Foreign Direct Investment and other macroeconomic variables on the level of employment. Results showed that output, population, and trade flows have a positive significant effect on the level of employment. Foreign Direct Investment, as an explanatory variable, was shown to be insignificant in affecting changes in the level of employment. This result is probably due to the fact that the FDI that enters the country was mostly concentrated in the manufacturing sector that has a relatively small share in the total employment. Another probable reason for the result is that the technological spillover that is expected to be brought by FDI which actually could induce a decrease in the total number of employed workers, has not been fully realized as of the moment.

Language

English

Call Number

LG 993.5 2009 E2 M36

Document Type

Thesis

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