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Mikroökonomische Determinanten und Effekte von FDI am Beispiel Baden-Württemberg

Author

Listed:
  • Christian Arndt
  • Anselm Mattes

Abstract

In this paper we analyze the microeconomic determinants and effects of FDI using data on a representative sample of establishments in the German south-west region of Baden-Württem¬berg. With 11 million inhabitants, Baden-Württemberg exceeds the size of Sweden or Belgium. Furhter we discuss the suitability of the dataset for the analysis of international firm activity. In line with the main body of recent microeconomic theory we find that only the most produc-tive, innovative, and biggest firms invest abroad. Market seeking is the predominant motive behind FDI. At the same time a considerable number of employees is affected by the bene-fits and drawbacks of internationalization. Labor demand regressions show that FDI does not have negative implications for domestic employment. With a closer look at the motives behind FDI, we find that horizontal FDI leads to a positive labor demand shock. On the other side, vertical FDI does not have negative labor market implications.

Suggested Citation

  • Christian Arndt & Anselm Mattes, 2008. "Mikroökonomische Determinanten und Effekte von FDI am Beispiel Baden-Württemberg," IAW Discussion Papers 43, Institut für Angewandte Wirtschaftsforschung (IAW).
    • Handle: RePEc:iaw:iawdip:43
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    File URL: http://www.iaw.edu/RePEc/iaw/pdf/iaw_dp_43.pdf
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    References listed on IDEAS

    as
    1. Andrew B. Bernard & J. Bradford Jensen & Stephen J. Redding & Peter K. Schott, 2007. "Firms in International Trade," Journal of Economic Perspectives, American Economic Association, vol. 21(3), pages 105-130, Summer.
    2. Muendler, Marc A & Becker, Sascha O., 2006. "The Effect of FDI on Job Separation," University of California at San Diego, Economics Working Paper Series qt28h3p82z, Department of Economics, UC San Diego.
    3. Elhanan Helpman & Marc J. Melitz & Stephen R. Yeaple, 2004. "Export Versus FDI with Heterogeneous Firms," American Economic Review, American Economic Association, vol. 94(1), pages 300-316, March.
    4. Anderson, T. W. & Hsiao, Cheng, 1982. "Formulation and estimation of dynamic models using panel data," Journal of Econometrics, Elsevier, vol. 18(1), pages 47-82, January.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    FDI; Auslaendische Direktinvestitionen; Arbeitsnachfrage;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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