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Employment in Host Regions and Foreign Direct Investment

Author

Listed:
  • Frank McDonald

    (Plymouth Business School, University of Plymouth, Drake Circus, Plymouth, Devon PL4 8AA, England)

  • Heinz J Tüselmann

    (International Business Unit, Manchester Metropolitan University Business School, Aytoun Building, Aytoun Street, Manchester M1 3GH, England)

  • Arne Heise

    (Universität zu Hamburg, Edmund-Siemers Allee 1, D-20146 Hamburg, Germany)

  • David Williams

    (Nottingham Business School, Nottingham Trent University, Burton Street, Nottingham NG1 4BU, England)

Abstract

This paper examines the relationship between foreign direct investment inflows and employment using international business strategy literature to identify the factors influencing the development of subsidiaries that might affect employment growth in host regions. A survey of German subsidiaries in North West England is used to test the significance of the variables that are identified as likely to affect employment. The results of logit regression indicate that entry mode, technology transfer, and firm age affect the growth of employment. The study also highlights that other factors, such as sector, organisational structure, the level of diversification of operations by subsidiaries in the local economy, and range of markets supplied may have important affects on employment. The research indicates that further conceptual and empirical work is required to clarify our understanding of how the organisational, operational, and diversification characteristics of subsidiaries affect employment.

Suggested Citation

  • Frank McDonald & Heinz J Tüselmann & Arne Heise & David Williams, 2003. "Employment in Host Regions and Foreign Direct Investment," Environment and Planning C, , vol. 21(5), pages 687-701, October.
    • Handle: RePEc:sae:envirc:v:21:y:2003:i:5:p:687-701
    DOI: 10.1068/c0231
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    References listed on IDEAS

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    Cited by:

    1. Stephen R. Buzdugan & Heinz Tüselmann, . "Making the most of FDI for development: “new” industrial policy and FDI deepening for industrial upgrading," UNCTAD Transnational Corporations Journal, United Nations Conference on Trade and Development.
    2. Yang, Yujeong, 2022. "Bring Your Own Workers: Chinese OFDI, Chinese overseas workers, and collective labor rights in Africa," World Development, Elsevier, vol. 152(C).
    3. Thomas Neise & Franziska Sohns & Moritz Breul & Javier Revilla Diez, 2022. "The effect of natural disasters on FDI attraction: a sector-based analysis over time and space," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 110(2), pages 999-1023, January.

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