The Effects of Overseas Operations on Home Employment of Japanese Multinational Enterprises

Nobuaki Yamashita and Kyoji Fukao

Hi-Stat Discussion Paper Series from Institute of Economic Research, Hitotsubashi University

Abstract: This paper examines the hypothesis that expansion of overseas operations of Japanese manufacturing multinational enterprises (MNEs) reduces home employment. While the existing studies are mainly based on the industry level, this paper presents the evidence using newly constructed firm-level panel data set over the period 1991-2002. In spite of concerns expressed about the adverse effects of FDI on the domestic economy, the evidence does not support the view that overseas operations expand at the cost of home employment in Japan. On the contrary, the findings suggest that overseas operations have somewhat helped to maintaining the level of home employment in Japanese manufacturing during the period under study. However, the results are sensitive to the estimation method used and whether the estimation is based on the panel data set is balanced or unbalanced.

Keywords: Multinational Enterprises; FDI; Labour demand; hollowing out of manufacturing; Japan (search for similar items in EconPapers)
JEL-codes: F14 F16 J31 (search for similar items in EconPapers)
Date: 2008-06
New Economics Papers: this item is included in nep-int and nep-lab
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Citations: View citations in EconPapers (1)

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Related works:
Chapter: The Effects of Overseas Operations on Home Employment of Japanese Multinational Enterprises (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:hst:hstdps:d08-251

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