The Relation between Foreign Direct Investments (FDI) and Labour Productivity in the European Union Countries

The effects of foreign direct investments (FDI) on host countries’ economies are mainly related to the increase of labour productivity through technological transfer, management and marketing proficiency that enables long term technological progress and economic growth. When the quantitative growth of the production factors is more difficult to achieve through decision makers’ measures, countries can try to increase the qualitive level. The development of performing management skills according to the standards imposed by the major corporate leading systems, the increase of the population's training level and its capacity to adapt to the technological developments can contribute to the increase of labour resources’ quality. In this paper, we analyze the relation between foreign direct investments and labour productivity in the E.U. countries, based on the data retrieved from the Eurostat website, for the 2000 – 2012 time periods. The data were processed using the SPSS computer program, through the correlation method.