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Domestic Repercussions of Different Types of FDI: Firm-Level Evidence for Taiwanese Manufacturing

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  • Liu, Wan-Hsin
  • Nunnenkamp, Peter

Abstract

Summary This paper addresses the public concern of hollowing-out effects of FDI by analyzing firm-specific data on Taiwanese manufacturing multinationals. We estimate ordered probit models with the firms' own assessment of domestic production and employment effects as dependent variables to investigate whether such effects depend on the size, location, and type of FDI. We find that the probability of negative effects increases slightly with the size of FDI. Furthermore, the effects of locating in China differ from those of locating in advanced countries. In contrast to vertical and export-platform FDI, employment effects of horizontal FDI tend to be positive.

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Bibliographic Info

Article provided by Elsevier in its journal World Development.

Volume (Year): 39 (2011)
Issue (Month): 5 (May)
Pages: 808-823

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Handle: RePEc:eee:wdevel:v:39:y:2011:i:5:p:808-823

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Web page: http://www.elsevier.com/locate/worlddev

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Keywords: FDI location type of FDI domestic employment home production Taiwan Asia;

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References

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Citations

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Cited by:
  1. Maximiliano Sosa Andrés & Peter Nunnenkamp & Matthias Busse, 2012. "What Drives FDI from Non-traditional Sources? A Comparative Analysis of the Determinants of Bilateral FDI Flows," Kiel Working Papers 1755, Kiel Institute for the World Economy.
  2. United Nations ESCAP, 2012. "Foreign Direct Investment," STUDIES IN TRADE AND INVESTMENT, in: Asia-Pacific Trade and Investment Report 2012: Recent Trends and Developments, chapter 3, pages 47-67 United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
  3. Konstantin M. Wacker & Krishna Chaitanya Vadlamannati, 2011. "Do Multinationals Influence Labor Standards? A Close Look at US Outward FDI," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 98, Courant Research Centre PEG.
  4. Peter Nunnenkamp & Maximiliano Sosa Andrés & Krishna Chaitanya Vadlamannati & Andreas Waldkirch, 2012. "What Drives India’s Outward FDI?," Kiel Working Papers 1800, Kiel Institute for the World Economy.

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