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

March 13, 2020

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Format: Chicago

Sakai Ando, and Mengxue Wang. Do FDI Firms Employ More Workers than Domestic Firms for Each Dollar of Assets?, (USA: International Monetary Fund, 2020) accessed December 22, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

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.

Subject: Asset and liability management, Balance of payments, Employment, Expenditure, Foreign direct investment, Labor, Public expenditure review, Special purpose vehicle

Keywords: C firm d, Company, Data of Orbis, Domestic firm, Employment, FDI firm, Firm B, Firm ID, Firm size, Foreign direct investment, Job Creation, Orbis, Ownership, Parent firm, Public expenditure review, Special purpose vehicle, WP

Publication Details

Pages:

34
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2020/056
Stock No:

WPIEA2020056
ISBN:

9781513536323
ISSN:

1018-5941

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