The Role of Foreign Direct Investment (FDI) on Employment In Iran

In this paper by using panel data and statistics of 1993-2004, and FDI statistics, labour demand function for three economic sectors (agriculture, industry and services) were estimated. The results show that the outcome of (F.D.I) during the study is not significant. But this effect on the skill labour in services sector is positive and in industrial sector is negative. The reason for this difference in industrial sector is using of old technology and in services sectors is high education. By presenting the FDI in industrial sector, employment will decrease and FDI for employment in agricultural sector is neutral.