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The impact of outward FDI on the home country's labour demand and skill composition

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  • Elia, Stefano
  • Mariotti, Ilaria
  • Piscitello, Lucia

Abstract

The present paper adds to the literature investigating the effects of outward FDI on the home country employment and skill composition. Considering the "industrial region" as the unit of the analysis, we capture both direct and indirect effects of foreign production on the parent company and its environment. The empirical evidence refers to the internationalisation of production by Italian firms throughout the period 1996-2002, and it shows that foreign activities have a negative impact upon the demand for low skilled workers in the parent company's "industrial region", but also on the demand for high skilled workers when FDI are addressed to high income countries.

Suggested Citation

  • Elia, Stefano & Mariotti, Ilaria & Piscitello, Lucia, 2009. "The impact of outward FDI on the home country's labour demand and skill composition," International Business Review, Elsevier, vol. 18(4), pages 357-372, August.
  • Handle: RePEc:eee:iburev:v:18:y:2009:i:4:p:357-372
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    Cited by:

    1. repec:spr:manint:v:52:y:2012:i:2:d:10.1007_s11575-012-0136-1 is not listed on IDEAS
    2. Ludo Cuyvers & Emmanuel Dhyne & Reth Soeng, 2010. "The effects of internationalisation on domestic labour demand by skills : Firm-level evidence for Belgium," Working Paper Research 206, National Bank of Belgium.
    3. repec:iab:iabdpa:201806 is not listed on IDEAS
    4. Gagliardi, Luisa & Iammarino, Simona & Rodríguez-Pose, Andrés, 2015. "Offshoring and the Geography of Jobs in Great Britain," CEPR Discussion Papers 10855, C.E.P.R. Discussion Papers.
    5. Schäffler, Johannes, 2016. "German Direct Investments in the Czech Republic – Employment Effects on German Multinational Enterprises," Annual Conference 2016 (Augsburg): Demographic Change 145526, Verein für Socialpolitik / German Economic Association.
    6. Padilla, Ramón & Gomes Nogueira, Caroline, 2015. "Determinants and home-country effects of FDI outflows: Evidence from Latin American countries," Estudios y Perspectivas – Sede Subregional de la CEPAL en México 166, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    7. Bojnec, Štefan & Ferto, Imre, 2014. "Outward Foreign Direct Iinvestments and Merchandise Exports: The European OECD Countries," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 87-99, June.
    8. Mariachiara Barzotto & Giancarlo Corò & Ilaria Mariotti & Marco Mutinelli, 2016. "The impact of Inward FDI on host country labour markets. A counterfactual analysis on Italian manufacturing companies," Working Papers 1612, c.MET-05 - Centro Interuniversitario di Economia Applicata alle Politiche per L'industria, lo Sviluppo locale e l'Internazionalizzazione.
    9. Amendolagine, Vito & Capolupo, Rosa & Ferri, Giovanni, 2014. "Innovativeness, offshoring and black economy decisions. Evidence from Italian manufacturing firms," International Business Review, Elsevier, vol. 23(6), pages 1153-1166.
    10. Damijan, Jože & Kostevc, Crt & Rojec, Matija, 2014. "Outward FDI and company performance in CEECs," Working Paper Series in Economics and Institutions of Innovation 381, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.

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