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Foreign Ownership and Employment Growth in a Developing Country

Author

Listed:
  • Robert E. Lipsey
  • Fredrik Sjöholm
  • 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 Sjöholm & 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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    File URL: http://hdl.handle.net/10.1080/00220388.2013.794264
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    References listed on IDEAS

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    1. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, January.
    2. 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.
    3. Nilsson Hakkala, Katariina & Heyman, Fredrik & Sjöholm, Fredrik, 2008. "Multinational Firms and Job Tasks," Working Paper Series 781, Research Institute of Industrial Economics.
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    Cited by:

    1. 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.
    2. Sjöholm, Fredrik, 2016. "Foreign Direct Investment and Value Added in Indonesia," Working Papers 2016:31, Lund University, Department of Economics.
    3. Sjöholm, Fredrik, 2013. "Foreign Direct Investments in Southeast Asia," Working Papers 2013:37, Lund University, Department of Economics.

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