Koszty pracy a napływ bezpośrednich inwestycji zagranicznych do Unii Europejskiej
Labor cost and foreign direct investment inflow to the European Union

Summary/Abstract: Relation between labor cost and foreign direct investment (FDI) is relatively broadly discussed in the source literature, but it seams to be less analyzed in the longer run. This paper's objective is to analyze changes in labor costs in EU countries in period 1995-2015, then to verity the thesis of their positive impact on foreign direct investment inflow. Statistical data covering the period published by some international organizations have been utilized, and research based on descriptive analysis methods has been conducted. General conclusion resulting from the conducted research is as follows: labor cost level is in fact one of several factors influencing FDI location decisions, and its importance should be assessed having also in mind e.g. labor productivity and target industries in host country. Labor costs can be moreimportant for FDI in labor-intensive industries with lower value added, but estimation of this phenomenon goes far beyond this research paper's framework.

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