The Relationship Between Foreign Direct Investments, Economic Growth And Employment

Abstract

This study aims to investigate the potential long-term relationship between foreign direct investments (FDI), economic growth, and employment in Azerbaijan. The primary objective is to determine whether FDI has a significant impact on both economic growth and employment within the country. To achieve this, the study utilizes the Granger causality test to uncover the presence and direction of relationships between FDI, economic growth, and employment during the period from 1996 to 2020.  Further research could explore the specific mechanisms through which FDI impacts employment in Azerbaijan and investigate potential policy interventions to maximize the positive employment effects of foreign investment. Additionally, considering the evolving global economic landscape and recent developments, updating this analysis with more recent data would provide valuable insights into the current relationship between FDI, economic growth, and employment in Azerbaijan.