IDEAS home Printed from https://ideas.repec.org/p/zbw/ifwkwp/765.html

Does foreign direct investment contribute to unemployment in home countries? An empirical survey

Author

Listed:
  • Agarwal, Jamuna Prasad

Abstract

According to investors' motivations, outward foreign direct investment (FDI) can be distinguished between natural resources seeking, market seeking or efficiency seeking. In the first two types, unemployment resulting from export substitution and reimports is expected to be considerably less than employment emanating from additional exports of capital equipment, intermediate goods and new product lines to foreign affiliates, and the need for more office jobs in the home countries. The efficiency seeking FDI may cause more unemployment due to export substitution and reimports than employment through additional exports to host countries. Since the first tivo types constitute generally the bulk of FDI. net employment effect on home countries should ceteris paribus be positive.

Suggested Citation

  • Agarwal, Jamuna Prasad, 1996. "Does foreign direct investment contribute to unemployment in home countries? An empirical survey," Kiel Working Papers 765, Kiel Institute for the World Economy.
    • Handle: RePEc:zbw:ifwkwp:765
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/47220/1/257779833.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Gary P. Sampson & Richard H. Snape, 1985. "Identifying the Issues in Trade in Services," The World Economy, Wiley Blackwell, vol. 8(2), pages 171-182, June.
    2. Beghin, John C. & Roland-Holst, David & Van der Mensbrugghe, Dominique, 1994. "Trade and Environment Nexus. Global Dimensions, The," Staff General Research Papers Archive 1589, Iowa State University, Department of Economics.
    3. Peter J. Buckley & Mark Casson, 1985. "The Economic Theory of the Multinational Enterprise," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-05242-4, March.
    4. Raymond Vernon, 1966. "International Investment and International Trade in the Product Cycle," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 80(2), pages 190-207.
    5. Stehn, Jürgen, 1992. "[Book Review of] The Triad in foreign direct investment, United Nations Centre on Transnational Corporations (UNCTC), New York, 1991," Open Access Publications from Kiel Institute for the World Economy 2170, Kiel Institute for the World Economy.
    6. Jagdish N. Bhagwati, 1984. "Splintering and Disembodiment of Services and Developing Nations," The World Economy, Wiley Blackwell, vol. 7(2), pages 133-144, June.
    7. Langhammer, Rolf J., 1992. "The NAFTA: another futile trade area (AFTA) or a serious approach towards regionalism?," Kiel Discussion Papers 195, Kiel Institute for the World Economy.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Holwegler, Bernhard & Trautwein, Hans-Michael, 1998. "Beschäftigungswirkungen der Internationalisierung - Eine Studie aus- und einfließender Direktinvestitionen der Metall- und Elektroindustrie im Raum Stuttgart," Violette Reihe: Schriftenreihe des Promotionsschwerpunkts "Globalisierung und Beschäftigung" 1/1998, University of Hohenheim, Carl von Ossietzky University Oldenburg, Evangelisches Studienwerk.
    2. Wilfried Altzinger & Peter Egger & Peter Huber & Kurt Kratena & Michael Pfaffermayr & Michael Wüger, 2000. "Teilprojekt 5: Transnationale Direktinvestitionen und Kooperationen," WIFO Studies, WIFO, number 19587.
    3. Lee, In Hyeock (Ian) & Hong, Eunsuk & Makino, Shige, 2020. "The effect of non-conventional outbound foreign direct investment (FDI) on the domestic employment of multinational enterprises (MNEs)," International Business Review, Elsevier, vol. 29(3).
    4. Ketan C. LIMAYE & Achut P. PEDNEKAR, 2019. "Does FDI substitute exports of home country? A case of US FDI in select Asian economies," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(4(621), W), pages 219-240, Winter.
    5. repec:hal:cepnwp:halshs-01895223 is not listed on IDEAS
    6. Antonia Lòpez-Villavicencio & Luis Antonio Reyes Ortiz, 2018. "Is globalisation taking away jobs? An empirical assessment for advanced economies," Working Papers halshs-01895223, HAL.
    7. Dube, S. & Dube, M. & Turan, A., 2015. "Information technology in Turkey: Creating high-skill jobs along with more unemployed highly-educated workers?," Telecommunications Policy, Elsevier, vol. 39(10), pages 811-829.
    8. Wilfried Altzinger, 1998. "Austria's Foreign Direct Investment in Central and Eastern Europe: 'Supply Based' or 'Market Driven'?," Department of Economics Working Papers wuwp057, Vienna University of Economics and Business, Department of Economics.
    9. repec:agr:journl:v:4(621):y:2019:i:4(621):p:219-240 is not listed on IDEAS

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jagdish Bhagwati & Arvind Panagariya, 2004. "The Muddles over Outsourcing," Journal of Economic Perspectives, American Economic Association, vol. 18(4), pages 93-114, Fall.
    2. Joseph Francois & Bernard Hoekman, 2010. "Services Trade and Policy," Journal of Economic Literature, American Economic Association, vol. 48(3), pages 642-692, September.
    3. Bernard Hoekman & Carlos Braga, 1997. "Protection and Trade in Services: A Survey," Open Economies Review, Springer, vol. 8(3), pages 285-308, July.
    4. Chris Wagner, 2020. "Deducing a state-of-the-art presentation of the Eclectic Paradigm from four decades of development: a systematic literature review," Management Review Quarterly, Springer, vol. 70(1), pages 51-96, February.
    5. Henk Kox, 2001. "Exposure of the business services industry to international competition," CPB Document 10.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    6. Bradford, Scott C. & Das, Satya & Saha, Anuradha, 2022. "Country size, per-capita income, and comparative advantage: services versus manufacturing," MPRA Paper 115091, University Library of Munich, Germany.
    7. Tamar Almor & Niron Hashai & Seev Hirsch, 2006. "The product cycle revisited: Knowledge intensity and firm internationalization," Management International Review, Springer, vol. 46(5), pages 507-528, September.
    8. Cleeve, Emmanuel A. & Debrah, Yaw & Yiheyis, Zelealem, 2015. "Human Capital and FDI Inflow: An Assessment of the African Case," World Development, Elsevier, vol. 74(C), pages 1-14.
    9. Li, Jiatao & Surana, Ankit & Chavan, Meena & Kano, Liena & Schotter, Andreas & Chirico, Francesco, 2025. "The internationalization of digital platform-based firms: A systematic literature review and directions for future research," Journal of World Business, Elsevier, vol. 60(4).
    10. Stopochkin Artem & Sytnik Inessa & Sytnik Bogdan, 2020. "Methodology for Analyzing the Level of International Entrepreneurship Development," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 259-285.
    11. Anwar, Sajid & Nguyen, Lan Phi, 2011. "Foreign direct investment and export spillovers: Evidence from Vietnam," International Business Review, Elsevier, vol. 20(2), pages 177-193, April.
    12. Tatoglu, Ekrem & W. Glaister, Keith, 1998. "An analysis of motives for western FDI in Turkey," International Business Review, Elsevier, vol. 7(2), pages 203-230, April.
    13. Buckley, Peter J. & Hashai, Niron, 2014. "The role of technological catch up and domestic market growth in the genesis of emerging country based multinationals," Research Policy, Elsevier, vol. 43(2), pages 423-437.
    14. Heinz Hollenstein, 2009. "Characteristics of Foreign R&D Strategies of Swiss Firms: Implications for Policy," Chapters, in: Dominique Foray (ed.), The New Economics of Technology Policy, chapter 19, Edward Elgar Publishing.
    15. Har Sandeep Kaur, 2016. "Services Exports and SAARC Countries: A Comparative Analysis of Growth, Performance and Competitive Advantage," Millennial Asia, , vol. 7(1), pages 20-41, April.
    16. Isabel Faeth, 2009. "Determinants Of Foreign Direct Investment – A Tale Of Nine Theoretical Models," Journal of Economic Surveys, Wiley Blackwell, vol. 23(1), pages 165-196, February.
    17. £ukasz Cywiñski & Ruslan Harasym, 2012. "Review Of Fdi Theory In The Knowledge–Intensive Economy," "e-Finanse", University of Information Technology and Management, Institute of Financial Research and Analysis, vol. 8(4), pages 1-14, February.
    18. Agarwal, Jamuna Prasad & Gubitz, Andrea & Nunnenkamp, Peter, 1991. "Foreign direct investment in developing countries: the case of Germany," Open Access Publications from Kiel Institute for the World Economy 423, Kiel Institute for the World Economy.
    19. Elisabeth Christen & Joseph Francois, 2010. "Modes of Delivery in Services," Economics working papers 2010-08, Department of Economics, Johannes Kepler University Linz, Austria.
    20. Buckley, Peter J., 2011. "The theory of international business pre-Hymer," Journal of World Business, Elsevier, vol. 46(1), pages 61-73, January.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:ifwkwp:765. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/iwkiede.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.