Does German foreign direct investment lead to job losses at home?
AbstractThis paper provides firm-level evidence on the labour demand effects of outward investments using a panel of multinationals (MNEs) based in Germany. Distinguishing the type of investments and the location of subsidiaries around the world between 1997 and 2008, our evidence shows that for both the manufacturing and services sector the expansion of employment abroad does not occur at the detriment of employment at home. The analysis is extended to see whether outward FDI causes average wage cuts for workers employed in the German parent firm. Our findings indicate no clear average wage effects due to outward FDI. Given that domestic MNEs are seen to play an important role in the growth potential for an economy, these findings are somewhat re-assuring from a policy point of view.
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Bibliographic InfoArticle provided by Duncker & Humblot, Berlin in its journal Applied Economics Quarterly.
Volume (Year): 55 (2009)
Issue (Month): 3 ()
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Web page: http://www.duncker-humblot.de
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- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- H29 - Public Economics - - Taxation, Subsidies, and Revenue - - - Other
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- Wagner, Joachim, 2009.
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IZA Discussion Papers
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- Joachim Wagner, 2011. "Offshoring and firm performance: self-selection, effects on performance, or both?," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 147(2), pages 217-247, June.
- Joachim Wagner, 2009. "Offshoring and firm performance: Self-selection, effects on performance, or both?," Working Paper Series in Economics 153, University of Lüneburg, Institute of Economics.
- Hecht, Veronika & Litzel, Nicole & Schäffler, Johannes, 2013. "The ReLOC project : method report for implementing a cross-border company survey in Germany and the Czech Republic," IAB-Forschungsbericht 201304, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
- Michael Pflüger & Uwe Blien & Joachim Möller & Michael Moritz, 2013. "Literature Overview - Labor Market Effects of Trade and FDI – Recent Advances and Research Gaps," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 233(1), pages 86-116, January.
- John P. Weche Geluebcke, 2011. "Foreign Ownership and Firm Performance in German Services: First Evidence based on Official Statistics," Working Paper Series in Economics 213, University of Lüneburg, Institute of Economics.
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