Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/144484
Authors: 
Dhyne, Emmanuel
Sarisoy Guerin, Selen
Year of Publication: 
2014
Series/Report no.: 
Working Paper Research 272
Abstract: 
The aim of this paper is to examine causal effects of outward foreign direct investment activities of corporations that start expanding abroad on a large number of domestic performance indicators. Our results indicate that there is no evidence in our data to show that FDI has statistically significant impact on productivity, employment and output. The only statistically significant result indicates that FDI causes positive growth in export intensity. On the other hand when we restrict our sample to Belgian manufacturing firms only, we do find that switching to OFDI causes a positive growth in TFP. This effect is coupled with an increase in wages and exports. On the other hand, we do not find any statistically significant evidence that internationalization of Belgian firms causes loss of employment for the unskilled worker as in other studies
Subjects: 
multinational firms
propensity score matching
difference-in-differences
JEL: 
F23
D21
C14
Document Type: 
Working Paper

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