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'Footloose' Multinationals?

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  • Görg, Holger
  • Strobl, Eric

Abstract

This Paper examines whether multinational companies are more ‘footloose’ than their domestic counterparts in the host country, using data for the Irish manufacturing sector. First, we investigate whether plant survival rates differ between multinationals and indigenous plants. Second, we analyse whether employment is more unstable in multinationals. As regards the first aspect we find that multinationals are more likely to exit the market than indigenous plants when controlling for other plant and industry specific characteristics. In terms of employment persistence we find that new jobs generated in MNCs appear to be more persistent than jobs generated in indigenous plants. In contrast, they are not any more or less likely to reverse employment reductions, all other things being equal.

Suggested Citation

  • Görg, Holger & Strobl, Eric, 2002. "'Footloose' Multinationals?," CEPR Discussion Papers 3402, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:3402
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    References listed on IDEAS

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    1. Mata, Jose & Portugal, Pedro & Guimaraes, Paulo, 1995. "The survival of new plants: Start-up conditions and post-entry evolution," International Journal of Industrial Organization, Elsevier, vol. 13(4), pages 459-481, December.
    2. repec:wsi:wschap:9789814749237_0017 is not listed on IDEAS
    3. Flamm, Kenneth, 1984. "The volatility of offshore investment," Journal of Development Economics, Elsevier, vol. 16(3), pages 231-248, December.
    4. Barry, Frank & Bradley, John, 1997. "FDI and Trade: The Irish Host-Country Experience," Economic Journal, Royal Economic Society, vol. 107(445), pages 1798-1811, November.
    5. Steven J. Davis & John Haltiwanger, 1992. "Gross Job Creation, Gross Job Destruction, and Employment Reallocation," The Quarterly Journal of Economics, Oxford University Press, vol. 107(3), pages 819-863.
    6. Holger Görg & Eric Strobl, 2016. "Multinational companies and indigenous development: An empirical analysis," World Scientific Book Chapters,in: MULTINATIONAL ENTERPRISES AND HOST COUNTRY DEVELOPMENT, chapter 17, pages 305-322 World Scientific Publishing Co. Pte. Ltd..
    7. McAleese, Dermot & Counahan, Michael, 1979. "'Stickers' or 'Snatchers'? Employment in Multinational Corporations during the Recession," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 41(4), pages 345-358, November.
    8. Audretsch, David B & Mahmood, Talat, 1995. "New Firm Survival: New Results Using a Hazard Function," The Review of Economics and Statistics, MIT Press, vol. 77(1), pages 97-103, February.
    9. Audretsch, David B, 1991. "New-Firm Survival and the Technological Regime," The Review of Economics and Statistics, MIT Press, vol. 73(3), pages 441-450, August.
    10. Mata, Jose & Portugal, Pedro, 1994. "Life Duration of New Firms," Journal of Industrial Economics, Wiley Blackwell, vol. 42(3), pages 227-245, September.
    11. Steven J. Davis & John C. Haltiwanger & Scott Schuh, 1998. "Job Creation and Destruction," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262540932, May.
    12. Holger Görg & Eric Strobl, 2002. "Multinational Companies and Entrant Start-up Size: Evidence from Quantile Regressions," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 20(1), pages 15-31, February.
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    More about this item

    Keywords

    employment stability; job persistence; multinational companies; plant survival;

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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