IDEAS home Printed from https://ideas.repec.org/a/esj/esriea/189c.html
   My bibliography  Save this article

Effect of Investing Abroad on Home Employment and its Secular Change: An Empirical Analysis Using the Questionnaire Survey of Small and Medium-Sized Manufacturers in Osaka (in Japanese)

Author

Listed:
  • Tetsuo MO
  • Ryoh OGAWA

Abstract

This paper examines effect of foreign direct investment (FDI) on the employment of domestically-owned firms and whether and how the effect changes over the years. We estimate two ordered probit/logit models using data collected through the questionnaire survey of small and medium-sized manufacturers whose their head offices are located in Osaka Prefecture. The results suggest that home employment increases with the increasing employment abroad but this tendency has been decreasing since the first-ever FDI for the manufacturer. This secular change persists even when we add the age of manufacturer to the set of independent variables. Next, we simulate how the average probability of selecting the “increasing home employment” increases when employment abroad expands. The “average” in this simulation means that evaluation are at sample mean of regressors. The results are as follows: while the increase in the probability is 25 % points in the case of 10 years since first-ever FDI, the increase in the probability is 4-5 % points in the case of 20 years. Moreover, we presume that the complementary relationship between home and overseas employment disappears in the case of more than 20 years. JEL Classification Number: F14 F16 F21 Key Words: Foreign direct investment; Home employment; small and medium-sized manufacturers

Suggested Citation

  • Tetsuo MO & Ryoh OGAWA, 2015. "Effect of Investing Abroad on Home Employment and its Secular Change: An Empirical Analysis Using the Questionnaire Survey of Small and Medium-Sized Manufacturers in Osaka (in Japanese)," Economic Analysis, Economic and Social Research Institute (ESRI), vol. 189, pages 46-62, February.
  • Handle: RePEc:esj:esriea:189c
    as

    Download full text from publisher

    File URL: http://www.esri.go.jp/jp/archive/bun/bun189/bun189c.pdf
    Download Restriction: no

    More about this item

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:esj:esriea:189c. See general 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: (KAWAMOTO Takuma). General contact details of provider: http://edirc.repec.org/data/esrgvjp.html .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.