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Multinational Firms: Easy Come, Easy Go? Author info | Abstract | Publisher info | Download info | Related research | Statistics Jan I. Haaland
Ian Wooton
Giulia Faggio
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It is often argued that countries with more flexible labor markets are better placed in attracting inward investment from multinational firms (MNEs). This is an issue when there is uncertainty in the marketplace and the firm faces some risk of closure of its branch plant. We study the MNE's location choice, explicitly taking into account exit, as well as entry, costs. We show that worker protection, through lay-off rules, deters potential investment in risky industries. Using evidence on MNE investment in Eastern Europe, we find support for our prediction that labor-market flexibility makes a location more attractive to the MNE.
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Article provided by Mohr Siebeck, Tübingen in its journal FinanzArchiv .
Volume (Year): 59 (2002/2003)
Issue (Month): 1 (February)
Pages: 3-
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Handle: RePEc:mhr:finarc:urn:sici:0015-2218(2002/200302)59:1_3:mfeceg_2.0.tx_2-wContact details of provider: Web page: http://www.mohr.de/fa
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Paper Haaland, J.I. & Wooton, I., 2000.
"Multinational Firms: Easy Come, Easy Go? ,"
Papers
19/00, Norwegian School of Economics and Business Administration-.
Haaland, Jan I. & Wooton, Ian, 2001.
"Multinational Firms: Easy Come, Easy Go? ,"
CEPR Discussion Papers
2660, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) Find related papers by JEL classification: D92 - Microeconomics - - Intertemporal Choice and Growth - - - Intertemporal Firm Choice and Growth, Investment, or Financing F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
References listed on IDEAS 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.:
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" International Competition for Multinational Investment ,"
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Haaland, Jan I. & Wooton, Ian, 1998.
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[Downloadable!] (restricted) Haaland, J.I. & Wooton, I., 1998.
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Kind, Hans Jarle & Midelfart Knarvik, Karen Helene & Schjelderup, Guttorm, 2000.
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CESifo Working Paper Series
CESifo Working Paper No. , CESifo Group Munich.
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Other versions: Ram Mudambi, 1999.
"Multinational Investment Attraction: Principal-Agent Considerations ,"
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Taylor and Francis Journals, vol. 6(1), pages 65-79, February.
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K Behrens & P M Picard, 2005.
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[Downloadable!] (restricted) Haaland, Jan I. & Wooton, Ian, 2002.
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Giovanni Immordino, 2003.
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Other versions: Kotov, Denis, 2008.
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