IDEAS home Printed from https://ideas.repec.org/a/mes/emfitr/v55y2019i15p3386-3403.html
   My bibliography  Save this article

Does Outward Foreign Direct Investment Boost Employment in the Home Country? Evidence from China’s Microlevel Data

Author

Listed:
  • Ni-Sha Jia
  • Yong-Hui Han
  • Ke-Ming Peng
  • Hong-Zhen Lei

Abstract

Does outward foreign direct investment (OFDI) create (or transfer) employment in (or from) the home country? To examine this question, we analyze how OFDI with different motivations influences employment in the home country, using micro data from 552 Chinese manufacturing enterprises investing abroad. We use two sets of indices, namely, the absolute employment amount and relative employment amount, and adopt a difference-in-differences methodology. Overall, we find that OFDI increases both the absolute and relative employment amount. In particular, market-seeking OFDI increases the absolute employment amount, but not the relative employment amount. Technology-seeking OFDI significantly promotes both absolute and relative employment amount of the parent firm in the home country, while resource-seeking and efficiency-seeking OFDI have no significant influence on employment at enterprises in the home country. The effect on home-country employment depends on the host country. Finally, investment in developed countries can significantly increase home-country employment, while investment in developing countries does not have a significant influence on home-country employment.

Suggested Citation

  • Ni-Sha Jia & Yong-Hui Han & Ke-Ming Peng & Hong-Zhen Lei, 2019. "Does Outward Foreign Direct Investment Boost Employment in the Home Country? Evidence from China’s Microlevel Data," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 55(15), pages 3386-3403, December.
    • Handle: RePEc:mes:emfitr:v:55:y:2019:i:15:p:3386-3403
    DOI: 10.1080/1540496X.2019.1601550
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/1540496X.2019.1601550
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/1540496X.2019.1601550?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Prajukta Tripathy & Pragyanrani Behera & Bikash Ranjan Mishra, 2023. "Study of linkages between productivity, export, and outward foreign direct investment: An empirical perspective of Indian manufacturing industries," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(2), pages 1527-1548, April.

    More about this item

    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:mes:emfitr:v:55:y:2019:i:15:p:3386-3403. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/MREE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.