These data include information such as employment and wages at both the parent firm and foreign affiliate levels. An advantage of Japanese data is the availability of parent-foreign affiliate matched data. We focus on Japanese multinationals, especially in the manufacturing sector. We empirically examine how and to what extend disemployment is related to FDI. Such positive effects may offset or even exceed the negative effects. One reason is that foreign direct investment (FDI) usually initiates increases in the production of final goods in foreign countries, which positively affects the production of intermediate inputs in the home country, resulting in the maintenance of, or an increase in, the demand for domestic labour. However, previous studies, including those conducted in Japan, have not necessarily confirmed this phenomenon of ‘exporting jobs’. In particular, the decline in manufacturing jobs is believed to have been the consequence of globalisation. For example, increased competition with foreign countries forces firms to relocate their production sites overseas, which results in disemployment in the home country. With the growing activities of multinationals, one of the major concerns for policymakers in developed countries is the disemployment caused by multinationals, especially in the manufacturing sector.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |