Wage implications of FDIs in Slovakia and Slovenia on post-communist emerging markets

Ionel Sergiu Pîrju ,Ioan Gina ,Carmen Sirbu ,Carmen Nastase ,Tincuța Vrabie

doi:10.24294/jipd.v8i12.9385

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Wage implications of FDIs in Slovakia and Slovenia on post-communist emerging markets

Ionel Sergiu Pîrju

Ioan Gina

Carmen Sirbu

Carmen Nastase

Tincuța Vrabie

Journal of Infrastructure Policy and Development 2024, 8(12), 9385; https://doi.org/10.24294/jipd.v8i12.9385

Submitted：29 Sept 2024

Accepted：29 Sept 2024

Published：31 Oct 2024

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Abstract

This study investigates the impact of Foreign Direct Investments (FDIs) on wage dynamics in Slovakia and Slovenia, with a particular emphasis on gender-specific effects in post-Communist emerging markets. By analyzing wage outcomes for male and female workers separately, the research reveals potential disparities in FDIs-driven wage growth. Employing econometric techniques and longitudinal data, the study explores the nuanced relationship between FDIs, wage policies, and economic development over time. A temporal lag in FDIs analysis suggests that Slovakia and Slovenia have experienced differing impacts from past foreign capital flows. In Slovakia, significant correlations indicate persistent FDIs influence and a pronounced effect on gender wage disparities. In Slovenia, more moderate correlations and FDIs volatility suggest a less stable relationship between external investment and wage dynamics. The originality of this research lies in its comparative approach, examining two distinct post-Communist nations and identifying unique country-specific patterns and trends. This study contributes to a deeper understanding of FDI’s role in labor market management and its implications for gender equality in two European emerging economies.

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