Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/175647
Authors: 
Dewit, Gerda
Görg, Holger
Temouri, Yama
Year of Publication: 
2018
Series/Report no.: 
Kiel Working Paper 2102
Abstract: 
We examine the determinants of the decision to relocate activities abroad for firms located in OECD countries. We argue that particular firm-specific features play a crucial role for the link between employment protection and relocation. Stricter employment protection laws in the current production location discourage firms' relocation abroad. While larger, more productive firms and firms with higher labour intensities have, ceteris paribus, higher propensities to relocate, they also face higher exit barriers if the country from which they consider relocating has strict employment protection laws. Our predictions are supported empirically, using firm level data for 28 OECD countries.
Subjects: 
Employment Protection
Relocation
Multinational Enterprises
JEL: 
F23
L23
J88
Document Type: 
Working Paper

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