EconPapers    
Economics at your fingertips  
 

Multinationals as Stabilizers? Economic Crisis and Plant Employment Growth

Roberto Alvarez () and Holger Görg ()

No 2692, IZA Discussion Papers from Institute for the Study of Labor (IZA)

Abstract: This paper examines the link between multinational enterprises and employment growth at the plant-level. We investigate in detail the comparative response of multinationals and domestic firms to an economic crisis, using the empirical setting of a well defined case of economic slowdown in Chile as a natural experiment. In our empirical analysis we find that employment growth in manufacturing plants has been drastically reduced during the economic crisis. More importantly, we do not find evidence that multinationals react to the economic crisis differently than do domestic firms. Our findings hold in a number of robustness tests, in which we also investigate the role of access to finance. The results are in contrast to the idea that multinationals are less affected by an economic crisis and that they may be able to act as stabilizers in developing countries.

Keywords: multinationals; employment growth; plant survival; economic crisis (search for similar items in EconPapers)
JEL-codes: F2 O1 J2 (search for similar items in EconPapers)
Date: 2007-03
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (3) Track citations by RSS feed

Published as 'Multinationals as Stabilisers? Economic Crisis, Access to Finance, and Employment Growth' in: Journal of Development Studies, 2012, 48 (7), 847-863

Downloads: (external link)
http://ftp.iza.org/dp2692.pdf (application/pdf)

Related works:
Working Paper: Multinationals as Stabilizers?: Economic Crisis and Plant Employment Growth (2007) Downloads
Working Paper: Multinationals as Stabilizers?: Economic Crisis and Plant Employment Growth Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:iza:izadps:dp2692

Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany

Access Statistics for this paper

More papers in IZA Discussion Papers from Institute for the Study of Labor (IZA)
Address: IZA, P.O. Box 7240, D-53072 Bonn, Germany
Contact information at EDIRC.
Series data maintained by Mark Fallak ().

 
Page updated 2014-07-25
Handle: RePEc:iza:izadps:dp2692