Do FDI Firms Employ More Workers than Domestic Firms for Each Dollar of Assets?

Sakai Ando and Mengxue Wang

No 2020/056, IMF Working Papers from International Monetary Fund

Abstract: This paper studies whether FDI firms employ more workers than domestic firms for each dollar of assets. Using the Orbis database and its ownership structure information, we show that, in most economies, domestic firms tend to employ more workers per asset than FDI firms. The result remains robust across individual industries in the case study of the United Kingdom. The analysis of the switchers (ownership changes from domestic to foreign or vice versa) suggests that ownership changes do not have an immediate impact on the employment per asset. This result suggests that different patterns of employment per asset seem to come from technological differences rather than from different ownership structures.

Keywords: WP; company; FDI firm; domestic firm; firm B; C firm d; parent firm; firm size; firm ID; data of Orbis; Foreign direct investment; Employment; Public expenditure review; Special purpose vehicle; Job Creation; Orbis; Ownership (search for similar items in EconPapers)
Pages: 34
Date: 2020-03-13
New Economics Papers: this item is included in nep-int
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Citations: View citations in EconPapers (2)

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