Multinationals as Stabilizers?: Economic Crisis and Plant Employment Growth
Abstract
This paper examines the link between multinational enterprises and employment growth at the plant-level. We investigate in detail the comparative response of multinationals and domestic firms to an economic crisis, using the empirical setting of a well defined case of economic slowdown in Chile as a natural experiment. In our empirical analysis we find that employment growth in manufacturing plants has been drastically reduced during the economic crisis. More importantly, we do not find evidence that multinationals react to the economic crisis differently than do domestic firms. Our findings hold in a number of robustness tests, in which we also investigate the role of access to finance. The results are in contrast to the idea that multinationals are less affected by an economic crisis and that they may be able to act as stabilizers in developing countries.Download Info
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Paper provided by University of Nottingham, GEP in its series Discussion Papers with number 07/15.Length:
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Handle: RePEc:not:notgep:07/15
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Postal: School of Economics University of Nottingham University Park Nottingham NG7 2RD
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Web page: http://www.nottingham.ac.uk/economics/
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Keywords: Multinationals; employment growth; plant survival; economic crisis;Other versions of this item:
- Alvarez, Roberto & Görg, Holger, 2007. "Multinationals as Stabilizers? Economic Crisis and Plant Employment Growth," IZA Discussion Papers 2692, Institute for the Study of Labor (IZA).
- Roberto Álvarez & Holger Görg, 2007. "Multinationals as Stabilizers?: Economic Crisis and Plant Employment Growth," Working Papers Central Bank of Chile 412, Central Bank of Chile.
- F2 - International Economics - - International Factor Movements and International Business
- O1 - Economic Development, Technological Change, and Growth - - Economic Development
- J2 - Labor and Demographic Economics - - Demand and Supply of Labor
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Roberto Álvarez & Sebastián Vergara, 2007. "Survival of Small and Medium-Sized Plants in Chile: Has it Changed over Time?, Does it Differ across Industries?," Working Papers Central Bank of Chile 427, Central Bank of Chile.
- Chun, Sun Eae & Nagano, Mamoru & Lee, Min Hwan, 2010.
"Ownership Structure and Risk-taking Behavior: Evidence from Banks in Korea and Japan,"
MPRA Paper
25334, University Library of Munich, Germany.
- Sun Eae Chun & Mamoru Nagano & Min Hwan Lee, 2011. "Ownership Structure and Risk‐taking Behavior: Evidence from Banks in Korea and Japan," Asian Economic Journal, East Asian Economic Association, vol. 25(2), pages 151-175, 06.
- Marcin Kolasa & Michal Rubaszek & Daria Taglioni, 2010.
"Firms in the great global recession: The role of foreign ownership and financial dependence,"
National Bank of Poland Working Papers
77, National Bank of Poland, Economic Institute.
- Kolasa, Marcin & Rubaszek, Michal & Taglioni, Daria, 2010. "Firms in the great global recession: The role of foreign ownership and financial dependence," Emerging Markets Review, Elsevier, vol. 11(4), pages 341-357, December.
- Alvarez, Roberto & Görg, Holger, 2009.
"Multinationals and plant exit: Evidence from Chile,"
International Review of Economics & Finance,
Elsevier, vol. 18(1), pages 45-51, January.
- Alvarez, Roberto & Görg, Holger, 2005. "Multinationals and Plant Exit: Evidence from Chile," IZA Discussion Papers 1611, Institute for the Study of Labor (IZA).
- Laura Alfaro & Maggie Xiaoyang Chen, 2012.
"Surviving the Global Financial Crisis: Foreign Ownership and Establishment Performance,"
American Economic Journal: Economic Policy,
American Economic Association, vol. 4(3), pages 30-55, August.
- Alfaro, Laura & Chen, Maggie Xiaoyang, 2012. "Surviving the global financial crisis : foreign ownership and establishment performance," Policy Research Working Paper Series 5946, The World Bank.
- Laura Alfaro & Maggie Chen, 2011. "Surviving the Global Financial Crisis: Foreign Ownership and Establishment Performance," NBER Working Papers 17141, National Bureau of Economic Research, Inc.
- Shafik Hebous & Alfons Weichenrieder, 2009. "Debt Financing and Sharp Currency Depreciations: Wholly vs. Partially Owned Multinational Affiliates," CESifo Working Paper Series 2892, CESifo Group Munich.
- Fabienne Fortanier & Selwyn Moons, 2011. "Foreign Investors in The Netherlands: Heterogeneous Employment and Productivity Effects," De Economist, Springer, vol. 159(4), pages 511-531, December.
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