Multinational resilience or dispensable jobs?: German FDI and employment in the Czech Republic around the Great Recession

Merlind Eisermann, Michael Moritz and Bastian Stockinger
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Merlind Eisermann: Institute for Employment Research (IAB), Nuremberg, Germany
Bastian Stockinger: Institute for Employment Research (IAB), Nuremberg, Germany

No 201509, IAB-Discussion Paper from Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]

Abstract: "This article investigates the employment development of Czech-based firms in German ownership in the years around the Great Recession of 2008/2009. The intense involvement of German firms in the economy of the neighboring country via foreign direct investment (FDI) raises the question whether under the conditions of a historically deep global downturn, Czech employees in multinational companies were confronted with an increased volatility of their jobs. Using a unique firm-level dataset, we contrast the affiliates of German investors with purely Czech-owned enterprises. Our findings indicate that in the years before the crisis, firms with German capital exhibited a noticeably more positive employment development. The results from the year 2008 onwards give reason to the conclusion that German-owned firms played a stabilizing role for the Czech labor market during the recession." (Author's abstract, IAB-Doku) ((en))

Keywords: Bundesrepublik Deutschland; Tschechische Republik; ausländische Arbeitgeber; Auslandsinvestitionen; Auswirkungen; Beschäftigerverhalten; Beschäftigungseffekte; Beschäftigungsentwicklung; Betriebsgröße; Entlassungen; multinationale Unternehmen; Rezession; Wirtschaftskrise; Arbeitsplatzsicherheit; 2004-2010 (search for similar items in EconPapers)
JEL-codes: F23 G01 J21 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2015
New Economics Papers: this item is included in nep-int, nep-lma, nep-mfd and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Published in/as: Prague Economic Papers, forthcoming (im Erscheinen), doi:10.18267/j.pep.617

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https://doku.iab.de/discussionpapers/2015/dp0915.pdf

Related works:
Journal Article: Multinational Resilience or Dispensable Jobs? German FDI and Employment in the Czech Republic Around the Great Recession (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:iab:iabdpa:201509

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