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Leveraging Foreign Direct Investment to Enhance Decent Work Standards
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Journal Article
Leveraging Foreign Direct Investment to Enhance Decent Work Standards
2025
Overview
This study investigates the relationship between Foreign Direct Investment (FDI) and decent work in emerging economies, with a comparative focus on Egypt and Mexico from 2008 to 2024. Grounded in theories of modernization, dependency, and institutional economics, the research explores how FDI affects key dimensions of decent work such as employment creation, social protection, rights at work, and social dialogue as defined by the International Labour Organization (ILO). Using panel data econometrics and country-level indicators such as labor force participation, wage levels, gender equality, average working hours and mean years of schooling as a control variable, the study finds a significant positive relationship between FDI inflows and improvements in decent work conditions, particularly when supported by strong institutional frameworks and labor regulations. While Mexico shows progress due to recent labor reforms under the USMCA, Egypt's gains remain limited by informality and weak enforcement. The findings highlight that FDI's contribution to decent work is not automatic but mediated by policy environments, sectoral dynamics, and institutional quality. The paper concludes with policy recommendations aimed at aligning FDI strategies with inclusive and sustainable labor outcomes.
Publisher
جامعة قناة السويس - كلية التجارة بالاسماعيلية
Subject
