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Expansion Abroad and Jobs at Home - Evidence from Japanese Multinational Enterprises

  • Nobuaki Yamashita

    (Australia Japan Research Centre)

  • Kyoji Fukao

This paper examines the exporting job hypothesis that expansion of overseas operations of manufacturing multinational enterprises (MNEs) reduces home employment using data for Japanese MNEs. While the existing studies are mainly based on the industry level data, this paper presents the evidence using a newly constructed firm-level panel data set over the period 1991-2002. The evidence does not support the widely-held view in Japanese policy circles that that overseas operations of MNEs expand at the cost of home employment. On the contrary, there is some evidence that overseas operations may have helped to maintain the level of home employment.

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File URL: http://www.eaber.org/node/22707
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Paper provided by East Asian Bureau of Economic Research in its series Macroeconomics Working Papers with number 22707.

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Date of creation: Jan 2009
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Handle: RePEc:eab:macroe:22707
Contact details of provider: Postal: JG Crawford Building #13, Asia Pacific School of Economics and Government, Australian National University, ACT 0200
Web page: http://www.eaber.org

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  16. Jozef Konings & Alan Patrick Murphy, 2006. "Do Multinational Enterprises Relocate Employment to Low-Wage Regions? Evidence from European Multinationals," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 142(2), pages 267-286, July.
  17. S. Lael Brainard & David A. Riker, 1997. "Are U.S. Multinationals Exporting U.S. Jobs?," NBER Working Papers 5958, National Bureau of Economic Research, Inc.
  18. Rana Hasan & Devashish Mitra & K.V. Ramaswamy, 2003. "Trade Reforms, Labor Regulations and Labor-Demand Elasticities: Empirical Evidence from India," Economics Study Area Working Papers 59, East-West Center, Economics Study Area.
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  30. Sanghoon Ahn & Kyoji Fukao & Keiko Ito, 2008. "Outsourcing in East Asia and its impact on the Japanese and Korean Labour Markets," OECD Trade Policy Papers 65, OECD Publishing.
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