The home-employment effect of FDI from developing countries: in the case of China
AbstractPurpose – The current extensive literature on the home-country employment effect of foreign direct investment (FDI) focuses almost exclusively on the investments from developed countries. The purpose of this paper is to analyze the home-country employment effect in China, a country that has emerged as an important emerging economy increasingly integrated into the global economy. Design/methodology/approach – This study investigates the long-run relationships between outward FDI and employment in China. Johansen's cointegration technique and Toda and Yamamoto's Granger causality tests are applied to data for the period 1982-2007. Findings – The results indicate that outward FDI from China had a positive impact on the home-country employment growth, especially in tertiary industry. These results also imply that the logic of the outward investments from low-cost transitional and developing economies differs from that of high-income countries. Originality/value – In this paper, the authors analyze the home-country employment effect of FDI in China.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Emerald Group Publishing in its journal Journal of Chinese Economic and Foreign Trade Studies.
Volume (Year): 4 (2011)
Issue (Month): 3 (October)
Contact details of provider:
Web page: http://www.emeraldinsight.com
Postal: Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK
Find related papers by JEL classification:
- F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
- J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Markusen, James R., 2002.
"Multinational Firms and the Theory of International Trade,"
8380, University Library of Munich, Germany.
- James R. Markusen, 2004. "Multinational Firms and the Theory of International Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262633078, December.
- L. Cuyvers & M. Dumont & G. Rayp & K. Stevens, 2002. "Home Employment Effects of EU Firms' Activities in Central and Eastern European Countries," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 02/158, Ghent University, Faculty of Economics and Business Administration.
- Pennings, Enrico & Sleuwaegen, Leo, 2000. "International relocation: firm and industry determinants," Economics Letters, Elsevier, vol. 67(2), pages 179-186, May.
- Jeffrey D. Sachs & Howard J. Shatz, 1994. "Trade and Jobs in Manufacturing," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 25(1), pages 1-84.
- Robert E. Lipsey & Eric D. Ramstetter & Magnus Blomstrom, 2000. "Outward FDI and Parent Exports and Employment: Japan, the United States, and Sweden," NBER Working Papers 7623, National Bureau of Economic Research, Inc.
- Matthew J. Slaughter, 1995. "Multinational Corporations, Outsourcing, and American Wage Divergence," NBER Working Papers 5253, National Bureau of Economic Research, Inc.
- Henrik Braconier & Karolina Ekholm, 2002.
"Foreign Direct Investment in Central and Eastern Europe: Employment Effects in the EU,"
Development Working Papers
161, Centro Studi Luca d\'Agliano, University of Milano.
- Braconier, Henrik & Ekholm, Karolina, 2001. "Foreign Direct Investment in Central and Eastern Europe: Employment Effects in the EU," CEPR Discussion Papers 3052, C.E.P.R. Discussion Papers.
- Magnus Blomstrom & Ari Kokko, 1994.
"Home Country Effects of Foreign Direct Investment: Evidence from Sweden,"
NBER Working Papers
4639, National Bureau of Economic Research, Inc.
- Blomström, Magnus & Kokko, Ari, 1994. "Home Country Effects of Foreign Direct Investment: Evidence from Sweden," CEPR Discussion Papers 931, C.E.P.R. Discussion Papers.
- Blomström, Magnus & Kokko, Ari, 1994. "Home Country Effects of Foreign Direct Investment: Evidence from Sweden," Working Paper Series in Economics and Finance 3, Stockholm School of Economics.
- Robert E. Baldwin, 1995.
"The Effects of Trade and Foreign Direct Investment on Employment and Relative Wages,"
OECD Jobs Study Working Papers
4, OECD Publishing.
- Robert E. Baldwin, 1995. "The Effects of Trade and Foreign Direct Investment on Employment and Relative Wages," NBER Working Papers 5037, National Bureau of Economic Research, Inc.
- S. Lael Brainard & David A. Riker, 1997. "Are U.S. Multinationals Exporting U.S. Jobs?," NBER Working Papers 5958, National Bureau of Economic Research, Inc.
- Campbell DC & Mcelrath RG, 1990. "The Employment effects of multinational enterprises in the United States and of American multinationals abroad," ILO Working Papers 289571, International Labour Organization.
- Irving B. Kravis & Robert E. Lipsey, 1988. "The Effect of Multinational Firms' Operations on Their Domestic Employment," NBER Working Papers 2760, National Bureau of Economic Research, Inc.
- Jaan Masso & Urmas Varblane & Priit Vahter, 2007.
"The Impact of Outward FDI on Home-Country Employment in a Low-Cost Transition Economy,"
William Davidson Institute Working Papers Series
wp873, William Davidson Institute at the University of Michigan.
- Jaan Masso & Urmas Varblane & Priit Vahter, 2007. "The Impact Of Outward Fdi On Home-Country Employment In A Low-Cost Transition Economy," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 52, Faculty of Economics and Business Administration, University of Tartu (Estonia).
- Braunerhjelm, Pontus & Oxelheim, Lars & Thulin, Per, 2005. "The Relationship Between Domestic and Outward Foreign Investment Revisited: The Impact of Industry-Specific Effects," Working Paper Series in Economics and Institutions of Innovation 35, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
- Slaughter, Matthew J., 2000. "Production transfer within multinational enterprises and American wages," Journal of International Economics, Elsevier, vol. 50(2), pages 449-472, April.
- repec:fth:iniesr:522 is not listed on IDEAS
- Kokko, Ari, 2006. "The Home Country Effects Of Fdi In Developed Economies," EIJS Working Paper Series 225, The European Institute of Japanese Studies.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Harris).
If references are entirely missing, you can add them using this form.