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Does FDI bring good jobs to host countries ?

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  • Javorcik, Beata S.

Abstract

Are jobs created by foreign investors good jobs? The evidence reviewed in this article is consistent with the view that jobs created by FDI are good jobs, both from the worker's and the country's perspective. From the worker's perspective, this is because such jobs are likely to pay higher wages than jobs in domestic firms, at least in developing countries, and because foreign employers tend to offer more training than local firms do. From the country’s perspective, jobs in foreign affiliates are good jobs because FDI inflows tend to increase the aggregate productivity of the host country.

Suggested Citation

  • Javorcik, Beata S., 2014. "Does FDI bring good jobs to host countries ?," Policy Research Working Paper Series 6936, The World Bank.
  • Handle: RePEc:wbk:wbrwps:6936
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    References listed on IDEAS

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    1. 34. Notable Women researchers on Economics
      by Euro American Association EAAEDS in Euro-American Association: World Development on 2018-10-09 19:52:00

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    Cited by:

    1. repec:gam:jsusta:v:10:y:2018:i:4:p:1219-:d:141496 is not listed on IDEAS
    2. Theodore H. Moran, 2014. "Foreign Investment and Supply Chains in Emerging Markets: Recurring Problems and Demonstrated Solutions," Working Paper Series WP14-12, Peterson Institute for International Economics.
    3. Sotiris Blanas & Adnan Seric & Christian Viegelahn, 2017. "Jobs, FDI and Institutions in Sub-Saharan Africa: Evidence from Firm-Level Data," Working Papers 152465485, Lancaster University Management School, Economics Department.
    4. Thomas Farole, 2016. "Do global value chains create jobs?," IZA World of Labor, Institute for the Study of Labor (IZA), pages 291-291, September.
    5. Mico Apostolov, 2016. "Cobb–Douglas production function on FDI in Southeast Europe," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 5(1), pages 1-28, December.
    6. repec:kap:jinten:v:15:y:2017:i:4:d:10.1007_s10843-017-0205-4 is not listed on IDEAS
    7. Theodore H Moran, 2016. "The Role of Industrial Policy as a Development Tool: New Evidence from the Globalization of Trade-and-Investment," Working Papers id:8423, eSocialSciences.
    8. Sara Amoroso & Pietro Moncada-Paternò-Castello, 2018. "Inward Greenfield FDI and Patterns of Job Polarization," Sustainability, MDPI, Open Access Journal, vol. 10(4), pages 1-20, April.
    9. Fritsch, Michael & Changoluisa, Javier, 2017. "New business formation and the productivity of manufacturing incumbents: Effects and mechanisms," Journal of Business Venturing, Elsevier, vol. 32(3), pages 237-259.
    10. Cobbe, Jim, 2014. "Managing Development and Public Policy: A Personal View," MPRA Paper 60427, University Library of Munich, Germany.
    11. Yoshimichi Murakami & Nobuaki Hamaguchi, 2017. "Peripherality, Inequality, and Economic Development in Latin American Countries," Discussion Paper Series DP2017-08, Research Institute for Economics & Business Administration, Kobe University.
    12. KODAMA Naomi & Beata S. JAVORCIK & ABE Yukiko, 2016. "Transplanting Corporate Culture across International Borders: FDI and female employment in Japan," Discussion papers 16015, Research Institute of Economy, Trade and Industry (RIETI).
    13. repec:eee:epplan:v:68:y:2018:i:c:p:233-242 is not listed on IDEAS

    More about this item

    Keywords

    Foreign Direct Investment; Labor Policies; Labor Markets; Economic Theory&Research; Microfinance;

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