Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/20538
Authors: 
Bhaumik, Sumon Kumar
Estrin, Saul
Meyer, Klaus
Year of Publication: 
2004
Series/Report no.: 
IZA Discussion paper series 1272
Abstract: 
Foreign investors are expected to contribute to economic development through a variety of channels. However, many foreign investment operations are small, and almost insignificant in their impact on the local environment. An important indication of the potential contribution of foreign investors is thus their employment growth. Employees working for, and trained by, a multinational enterprise may become carriers of new technology and business practices. The more employees receive access to new knowledge, the more they in turn may spread the knowledge across the economy, for instance by setting up their own businesses. In this paper, we make a first step in investigating the determinants of this important mediating variable, employment growth. For a dataset covering four diverse emerging economies, we find that wholly-owned FDI operations have higher employment growth, while local industry characteristics moderate the growth effect.
Subjects: 
MNE
employment growth
control
institutions
FDI policy
JEL: 
O13
J21
O33
F23
Document Type: 
Working Paper

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