Foreign Direct Investments—A Perspective of Sustainability: Evidence from the Austrian and German Labor Market

Abstract

In the context of the sustainability roadmap, this study presents a quantitative perspective by investigating the interconnection between foreign direct investments (FDIs) and wage dynamics to contribute to the reduction of gender inequalities. This paper focuses on Austria and Germany, two European countries with strong commitments to sustainable change, as representative cases for the analysis. The main objective is to quantify the impact of FDIs on salary trends and investigate their relationship, especially concerning gender-related aspects. This research introduces fresh insights into the existing literature by shedding light on the role of FDIs in shaping wage dynamics, particularly related to gender equality. The quantitative analysis highlights the model’s robustness, revealing that approximately 86% of wage variation is explained by the independent variable, FDIs. This statistical result suggest a linear relationship between FDIs and wages in these two countries, reaffirming the potential impact of foreign investments on wage dynamics as a base for enhancing sustainable socioeconomic progress.