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Do FDI Firms Employ More Workers than Domestic Firms for Each Dollar of Assets?
Author:
Mr. Sakai Ando
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https://orcid.org/0000-0003-2785-4375
and
Mengxue Wang null

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Series:
IMF Working Papers
Volume/Issue:
Volume 2020: Issue 056
Language:
English
Publication Date:
13 Mar 2020
DOI:
https://doi.org/10.5089/9781513536323.001
ISBN:
9781513536323
ISSN:
1018-5941
Pages:
34
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
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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.
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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.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund