Document Type : Research Paper
Authors
1 DEPARTMENT OF ECONOMIC. UNIVERSITY OF SISTAN AND BALUCHESTAN
2 School of Business and Economics, Persian Gulf University, Busheher, Iran
3 Faculty of Economics, University of Sistan and Baluchestan, Zahedan, Iran
Abstract
Today, employment and people's access to a desirable job is considered one of the most important needs of the society, so that one of the indicators of the development of societies is the increase of employment. Various factors affect the level of employment in the economy of a country. One of these factors is foreign direct investment (FDI), which has special role in the economy of countries in the last two decades. Therefore, the purpose of this research is to investigate the direct and indirect (spatial) effects of foreign direct investment on employment in different regions of Iran during 2010-2019 using the spatial panel econometric model. The results of the estimation of the Spatial Durbin Model (SDM) with fixed effects showed that foreign direct investment has a positive and direct effect on the employment of the provinces of the country. Also, its indirect effects (spillover) on employment in the provinces are positive and significant. Based on this, by directing these investments towards productive and value-creating activities of the economy, an effective step can be taken towards the optimal use of these investments. The direct and indirect (spillover) effects of the gross domestic product (GDP) have also been positive and significant and have caused an increase in employment in the regions themselves and nearby regions. Credits granted by banks and capital expenditures of the government have also had a positive and significant direct effect on the employment of the provinces of the country.
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