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Does FDI increase labour market volatility at home?

Ayesha Ashraf and Muhammad Umar Chaudhry

Applied Economics Letters, 2022, vol. 29, issue 20, 1944-1948

Abstract: This article examines the effect of outbound FDI on labour market volatility and, thereby, on economic insecurity in home countries of FDI distinguishing between greenfield FDI (GFDI) and cross-border mergers and acquisitions (M&A). Using the data up to 94 countries during the period 2003–2019, we find that outward GFDI stimulate economic insecurity by increasing volatility of employment. Cross-border M&A purchases, however, decrease the labour market volatility measured both in terms of volatility of employment and hours worked.

Date: 2022
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DOI: 10.1080/13504851.2021.1966366

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