Gross job flows and firms’ international activities
AbstractThis article sums up the findings of an empirical study into the link between firms’ involvement in international markets – via international trade and direct investment – and employment developments in Belgium. The main novelty of the analysis lies in the use of a microeconomic database on non-financial corporations. This information notably makes it possible to analyse trends in employment by distinguishing between the job gains attributable to certain enterprises and, at the same time, the losses ascribed to others. Thus, besides the impact of international trade and foreign direct investment on domestic employment levels, it also enables an assessment of their role in the process of reallocating labour between firms. An examination of the microeconomic data, supplemented by an econometric analysis, shows that a relatively small proportion of Belgian firms is involved in international trade and that an even smaller fraction of them has foreign direct investment links. These firms can be distinguished by the large number of people they employ, as well as by their productivity levels, which are generally higher than those of firms geared exclusively towards the local market. Moreover, in comparison to the latter, they saw a higher average growth in the number of their employees between the years 1997 and 2005. This difference is all the more pronounced in the case of importing firms. Lastly, these companies are also characterised by job rotation on a smaller scale than that found in purely local firms. This lower degree of employment volatility can be explained by opportunities for diversifying the risks involved for firms operating on foreign markets as well as the domestic market. This diversification therefore enables workers to enjoy more stable employment conditions.
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 National Bank of Belgium in its journal Economic Review.
Volume (Year): (2008)
Issue (Month): II (June)
Contact details of provider:
Postal: Boulevard de Berlaimont 14, B-1000 Bruxelles
Phone: (+ 32) (0) 2 221 25 34
Fax: (+ 32) (0) 2 221 31 62
Web page: http://www.nbb.be/
More information through EDIRC
trade and labour market interactions; multinational firms; job turnover;
Find related papers by JEL classification:
- F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.