Special Issue S8: “FDI Inflows in the Brazilian Economy”
The ability of FDI to spur economic modernization in the recipient economy has been widely acknowledged in the literature. Brazil stands out as the region that receives the most foreign investment in Latin America. Studies on the effects of FDI in Brazil are still in the early stages, though. The impact of FDI on the local labor market and the average worker income in the host region is examined in this study. To achieve this, we used the first regional-level FDI database in the nation and specifically examined the effects of FDI in the area with the highest industrial concentration: the state of São Paulo. This is the first study to examine while considering FDI in the area, the relationship between employment and income at the municipal level in the state of São Paulo. The findings support the claim that the presence of multinational corporations raises the standard of employment, particularly in fields that demand skilled labor. A favorable environment for FDI can leverage the economic and social development of host regions and support the formulation of local policies. This also emphasizes FDI as a vehicle for increasing employment and valuing the workforce, adding to the body of existing literature and supplying information for forthcoming research on the topic.
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