Home Employment Effects of EU Firms? Activities in Central and Eastern European Countries

Cuyvers, Ludo; Dumont, Michel; Rayp, Glenn; Stevens, Katrien

doi:10.1007/s11079-005-5873-3

Cited by 25 publications

(12 citation statements)

References 23 publications

(19 reference statements)

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Similar conclusions on these lines were obtained by Braconier and Ekholm (2000) for Swedish MNEs; and by Cuyvers et al (2005) and Konings and Murphy (2006) for European MNEs. Bruno and Falzoni (2003) investigated the role of labour …”

Section: Theoretical Frameworksupporting

confidence: 84%

On the employment effects of outward FDI: the case of Spain, 1995–2011

Bajo‐Rubio

Mora

2015

Applied Economics

View full text Add to dashboard Cite

“…3) Studies empirically investigating the substitution possibilities between parent company employment and foreign affiliate employment (Brainard, Riker 1997; Hanson et al 2003;Becker et al 2005;Cuyvers et al 2005;Konings, Murphy 2006;Murphy 2006;Harrison et al 2007;Desai et al 2009).…”

Section: How Economists Have Evaluated the Effects Of Ofdi On Employmmentioning

confidence: 99%

Outward FDI and home-country performance: Evidence from Italian manufacturing and service firms

Imbriani¹,

Pittiglio²,

Reganati³

2010

The 6th International Scientific Conference "Business and Management 2010". Selected Papers

View full text Add to dashboard Cite

How does outward foreign direct investment (FDI) affect employment and productivity growth in the home country? Does the impact of outward investment differ among manufacturing and service sectors? In this paper, we analyze the effects of investing abroad using firm-level data for Italy in the period 2003-2006. We adopt matching techniques in combination with a difference-indifference estimator in order to investigate the causal effect on domestic employment and productivity of becoming multinational. Preliminary results suggest that, on average, Italian outward FDI has limited effects on the domestic employment and performance of internationalizing firms. However, results differ significantly according to the sector (manufacturing versus services) in which the MNEs operate. In particular, we find that whereas in the manufacturing sector, outward FDI tends to strengthen both productivity and to a lesser extent employment, in the service sector there is a negative effect on both employment (two years after the investment) and productivity.

show abstract

“…These studies have typically examined the effects of outward FDI on the labor intensity of activities carried out in the home country (Blomström et al 1997;Mariotti et al 2003); the impact of investing abroad on domestic skill composition (Kravis and Lipsey 1993;Slaughter 2000;Head and Ries 2002;Falzoni and Grasseni 2005;Hansson 2004;Mariotti and Piscitello 2006), as well as the possibilities of substitution between parent company employment and foreign affiliate employment (e.g., Brainard and Riker 1997;Becker et al 2005;Cuyvers et al 2005;Konings and Murphy 2006;Murphy 2006;Harrison et al 2007;Desai et al 2009). …”

Section: Introductionmentioning

confidence: 99%

Outward Foreign Direct Investment and Domestic Performance: the Italian Manufacturing and Services Sectors

2011

View full text Add to dashboard Cite

How does outward foreign direct investment (FDI) affect employment and productivity growth in the home country? Does the impact of outward investment differ among manufacturing and service sectors? In this paper we analyze the effects of investing abroad using firm-level data for Italy for the period 2003-2006. We adopt matching techniques in combination with a difference-in-difference estimator in order to investigate the causal effect of becoming multinational on domestic employment and productivity. Preliminary results suggest that Italian outward FDI has limited effects on domestic employment and performance of internationalizing firms on average. However, results significantly differ depending on the sector (manufacturing versus services) where the MNEs are operating. In particular, we find that while in the manufacturing sector, outward FDI tends to strengthen both productivity and, to less extent, employment. In the service sector, we find a negative effect on employment (two years after the investment).

show abstract

“…We use firm level data on exports, imports and OFDI for a sample of Belgian firms. Compared to similar studies for Belgium which previously only considered the effect of outward foreign direct investment in Europe (Cuyvers et al, 2005; Cuyvers and Soeng, 2010; Konings and Murphy, 2006), our dataset covers international transactions and OFDI worldwide. We investigate whether exports to, imports from and OFDI to low-income and high-income countries differ significantly in their effects on demand for skilled and unskilled labour.…”

Section: Introductionmentioning

confidence: 99%

The Effects of Internationalisation on Domestic Labour Demand by Skills: Firm-Level Evidence for Belgium

Cuyvers¹,

Dhyne

Soeng

2010

SSRN Journal

Self Cite

View full text Add to dashboard Cite

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Abstract:We empirically investigate the effects of the internationalisation of Belgian firms on domestic demand for production and non-production workers, which are used as proxies for unskilled and skilled labour. Distinction is made between home-employment effects of firms' internationalisation, through either international trade or outward foreign direct investment, in highincome countries and in low-income economies. The results of our econometric analysis, using data over 1997-2007, suggest that increasing import shares from low-income countries or investing in those countries significantly reduces demand for low-skilled labour, while it increases demand for skilled labour. An increase in exports generally raises the demand for production workers, while it reduces the demand for non-production workers. However, these effects are reversed in the case of exports to low-income countries. Considering the impact of FDI, our results tentatively suggest that the setting up of a new international investment project has a positive impact on demand for non-production workers one period before it is made. This positive effect is offset in the long run, particularly in the case of investment in low-income countries. JEL Classification: C23; F16; F21

show abstract

“…Studies on the home-country employment effect have obtained mixed results. The first group of studies dealing in detail with the employment effect of FDI found a substitution effect between a foreign subsidiary's activity and its parent's employment (Kravis and Lipsey 1988, Brainard and Riker 1997, Braconier and Ekholm 2001, Konings and Murphy 2001, and Cuyvers et al 2005. Several studies have concluded that substitution occurs between countries with comparable factor endowments, which means that low-wage countries are better employment substitutes for one another than for parent (high-income) economy employment (Brainard and Riker, 1997;Slaughter 2000;Braconier and Ekholm, 2001; Konings and Murphy, 2003;Hansson 2005).…”

Section: Overview Of the Existing Literature On The Home-country Emplmentioning

confidence: 99%

The Impact of Outward FDI on Home-Country Employment in a Low-Cost Transition Economy

2007

View full text Add to dashboard Cite

The current extensive literature on the home-country employment effect of FDI focuses almost exclusively on the case of investments from high-income and high labour cost home countries. In our paper we analyse the home-country employment effect in Estonia as a lowcost medium-income transition economy. The data from the population of Estonian firms between 1995 and 2002 was studied with regression analysis and propensity score matching in order to construct an appropriate counterfactual for the firms that have invested abroad. The results indicate that in general, outward FDI had a positive impact on the home-country employment growth. Concerning direct investors (domestic firms investing abroad) and indirect investors (foreign-owned firms investing abroad), the former group had a stronger homecountry employment effect due to their smaller pre-investment size and because the subsidiaries of indirect investors are served from other locations rather than from Estonia. The positive employment effect was much stronger in the case of investments made after 1999 due to the better macroeconomic performance of Estonia from the year 2000 onwards. Services firms demonstrated a stronger home-country employment effect than manufacturing firms. Our results imply that the logic of the outward investments from low-cost transition and developing economies differs from that of high-income countries.

show abstract

Home Employment Effects of EU Firms? Activities in Central and Eastern European Countries

Cited by 25 publications

References 23 publications

On the employment effects of outward FDI: the case of Spain, 1995–2011

Outward FDI and home-country performance: Evidence from Italian manufacturing and service firms

Outward Foreign Direct Investment and Domestic Performance: the Italian Manufacturing and Services Sectors

The Effects of Internationalisation on Domestic Labour Demand by Skills: Firm-Level Evidence for Belgium

The Impact of Outward FDI on Home-Country Employment in a Low-Cost Transition Economy

Contact Info

Product

Resources

About