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‘Footloose’ Multinationals?

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  • Holger Görg
  • Eric Strobl

Abstract

We examine whether multinational companies are more footloose than their domestic counterparts in the host country, using data for the Irish manufacturing sector. First, we investigate whether plant survival rates differ between multinationals and indigenous plants. Second, we analyse whether employment is more unstable inmultinationals. As regards the first aspect we find that multinationals are morelikely to exit the market than indigenous plants when we control for other plant–and industry–specific characteristics. In terms of employment persistence we find that new jobs generated in multinational companies appear to be more persistent than jobs generated in indigenous plants. In contrast, they are not any more or less likely to reverse employment reductions, all other things being equal.

Suggested Citation

  • Holger Görg & Eric Strobl, 2003. "‘Footloose’ Multinationals?," Manchester School, University of Manchester, vol. 71(1), pages 1-19, January.
  • Handle: RePEc:bla:manchs:v:71:y:2003:i:1:p:1-19
    DOI: 10.1111/1467-9957.00331
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    1. Mata, Jose & Portugal, Pedro, 1994. "Life Duration of New Firms," Journal of Industrial Economics, Wiley Blackwell, vol. 42(3), pages 227-245, September.
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    More about this item

    JEL classification:

    • 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

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