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Foreign Ownership and Employment Growth in a Developing Country

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  • Robert E. Lipsey
  • Fredrik Sj�holm
  • Jing Sun

Abstract

Many developing countries would like to increase employment in the formal sectors. One way to accomplish this goal may be to encourage the entrance of foreign firms. We examine employment growth in Indonesian plants taken over by foreign owners from domestic ones. We also examine the effect of FDI during different trade regimes and the timing of employment effects following an acquisition. For plants that change the nationality of ownership, we find a strong effect of shifts from domestic to foreign ownership in raising the growth rate of employment, but no significant effects of shifts from foreign to domestic ownership.

Suggested Citation

  • Robert E. Lipsey & Fredrik Sj�holm & Jing Sun, 2013. "Foreign Ownership and Employment Growth in a Developing Country," Journal of Development Studies, Taylor & Francis Journals, vol. 49(8), pages 1133-1147, August.
    • Handle: RePEc:taf:jdevst:v:49:y:2013:i:8:p:1133-1147
    DOI: 10.1080/00220388.2013.794264
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    References listed on IDEAS

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    1. Haryo Aswicahyono & Hal Hill & Dionisius Narjoko, 2010. "Industrialisation after a Deep Economic Crisis: Indonesia," Journal of Development Studies, Taylor & Francis Journals, vol. 46(6), pages 1084-1108.
    2. Nilsson Hakkala, Katariina & Heyman, Fredrik & Sjöholm, Fredrik, 2008. "Multinational Firms and Job Tasks," Working Paper Series 781, Research Institute of Industrial Economics.
    3. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, December.
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    Cited by:

    1. Nauval Hafiluddin & Arianto A. Patunru, 2022. "The Impact of Foreign Investment on Firm Performance: Indonesia After the 2007 FDI Reform," Economics and Finance in Indonesia, Faculty of Economics and Business, University of Indonesia, vol. 68, pages 37-50, Juni.
    2. Nur FERIYANTO & Jaka SRIYANA, 2016. "Labor Absorption Under Minimum Wage Policy In Indonesia," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(1), pages 11-21, June.
    3. Sjöholm, Fredrik, 2016. "Foreign Direct Investment and Value Added in Indonesia," Working Paper Series 1141, Research Institute of Industrial Economics.
    4. Sjöholm, Fredrik, 2013. "Foreign Direct Investments in Southeast Asia," Working Papers 2013:37, Lund University, Department of Economics.
    5. Mohammad Amin, 2023. "Does competition from informal firms hurt job creation by formal manufacturing SMEs in developing and emerging countries? Evidence using firm-level survey data," Small Business Economics, Springer, vol. 60(4), pages 1659-1681, April.
    6. Helga Leitner & Eric Sheppard, 2022. "Speculating on land, property and peri/urban futures: A conjunctural approach to intra-metropolitan comparison," Urban Studies, Urban Studies Journal Limited, vol. 59(8), pages 1655-1675, June.
    7. Bo Chen & Yao Li & Yuming Yin, 2016. "FDI, Industry Heterogeneity and Employment Elasticity in China," Review of Development Economics, Wiley Blackwell, vol. 20(1), pages 189-200, February.
    8. Seng Sothan, 2017. "Causality between foreign direct investment and economic growth for Cambodia," Cogent Economics & Finance, Taylor & Francis Journals, vol. 5(1), pages 1277860-127, January.
    9. Sjöholm, Fredrik, 2021. "Industrial Policy and Foreign Direct Investment," Working Paper Series 1400, Research Institute of Industrial Economics.

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