Growth in foreign direct investment encourages the expansion of world trade

Article Abstract:

Increases in foreign direct investment (FDI) has significantly stimulated the growth of world trade. Research shows that FDI increased to $225 billion in 1989 from $40 billion in 1982, reflecting an average yearly growth of nearly 30%. At the same time, GAP grew at an average of 7.8% worldwide while international exports reached 9.4%. The movement of FDI, which used to be from developed to less developed countries, has shifted during the same period, with industrialized nations taking in more than 80% after 1985. Cross-border capital flows was greatest between the European Economic Area and North America although foreign investment in EC has steadily risen since 1989. However, FDI is not without its problems. It is blamed for the destruction of domestic businesses, exhaustion of natural resources and inversion of capital inflow due to profit repatriation. That FDI will maintain the growth rate during 1985-1989 is highly doubted.

Evaluation, Foreign investments, International aspects, International trade, Capital movements

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Employment in the EC is rising, but so is the number of jobless

Article Abstract:

Unemployment remains a serious problem within the European Community despite the nine million new jobs generated in the region from 1983 to 1990. The increase in employment during this period was not necessarily a positive development. More people were hired in the 1980s because labor productivity was falling. The high unemployment rate in EC is attributed to the increase in the labor supply. The EC's labor market continues to grow due to immigration and the increased participation in the labor force, and these new entrants appear to be more successful in finding jobs than the unemployed. It is estimated that only 1.2 million of newly created jobs went to the unemployed while 7.8 million new jobs went to new labor market participants. Other significant trends in the EC labor market include the increase in long-term unemployment rate and the decrease in youth unemployment.

Europe, Employment, Statistics, Unemployment, European Union, Labor market, European Community

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