Determinants of Employment Growth at MNEs: Evidence from Egypt, India, South Africa and Vietnam

Sumon Bhaumik, Klaus Meyer and Saul Estrin

William Davidson Institute Working Papers Series from William Davidson Institute at the University of Michigan

Abstract: Foreign investors are expected to contribute to economic development through a variety of channels. However, many foreign investment operations are small, and almost insignificant in their impact on the local environment. An important indication of the potential contribution of foreign investors is thus their employment growth. Employees working for, and trained by, a multinational enterprise may become carriers of new technology and business practices. The more employees receive access to new knowledge, the more they in turn may spread the knowledge across the economy, for instance by setting up their own businesses. In this paper, we make a first step in investigating the determinants of this important mediating variable, employment growth. For a dataset covering four diverse emerging economies, we find that wholly-owned FDI operations have higher employment growth, while local industry characteristics moderate the growth effect.

Keywords: MNE; employment growth; control; institutions; FDI policy (search for similar items in EconPapers)
JEL-codes: F23 J21 O13 O33 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2004-07-01
New Economics Papers: this item is included in nep-afr, nep-dev, nep-lab, nep-sea and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Related works:
Journal Article: Determinants of Employment Growth at MNEs: Evidence from Egypt, India, South Africa and Vietnam (2007)
Working Paper: Determinants of Employment Growth at MNEs: Evidence from Egypt, India, South Africa and Vietnam (2004)
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