Front Matter Page
Statistics Department
Contents
Abstract
I. Introduction
II. Literature
III. Data
A. Classifying Firms into FDI and Domestic Firms
B. Treatment of Special Purpose Entities
IV. Main Analysis
A. Discussion About the Main Result
V. Analysis at the Industry Level
A. Comparison of FDI and Domestic Firms at the Industry Level
B. Industry Composition and Cross-Sectional Pattern of Employment per Asset
VI. Analysis of Switchers
VII. Conclusion
VIII. References
IX. Annexes
A. Summary Statistics of Data Cleaning
B. An Alternative Measure Based on Shareholders’ Funds
C. Alternative Definition of FDI Firms
D. Alternative Definition of SPEs: Restrict SPEs to FDI Firms
E. Alternative Definition of SPE: Lower Five Percentile of the Employee Distributions
F. Industry Structure and Difference in Employment per Asset: Finance Industry
G. Switcher’s Analysis: Russia, Germany, All Firms in the Sample
H. Switcher’s Analysis: Difference-in-Difference
Tables
Table 1. Format of Shareholder Information in Orbis
Table 2. Reduction of Observations Due to Lack of Asset or Number of Employees
Table 3. Number of Firms by the Share Held by Nonresident
Table 4. Difference in Difference Analysis
Figures
Figure 1. Firm B, C, and D are All Direct Investment Enterprises of Firm A
Figure 2. Total Percentage in Orbis Overestimates Direct Investment
Figure 3. Domestic Firms Employ More Workers per Asset in Most Economies
Figure 4. The Largest t-Statistics Economies Are Not Driven by Outliers
Figure 5. The Result Survives If All Firms with Less Than 100 Employees Are Dropped
Figure 6. Heterogeneity Increases if the Number of Employees is Replaced by Their Cost
Figure 7. Domestic Firms Employ More Workers per Asset in All Industries of the United Kingdom
Figure 8. Services and Manufacturing Are the Two Highest t-Statistics Industries
Figure 9. Sectors That Are Positively Associated with FDI-Domestic Difference
Figure 10. The Four Groups Do Not Exhibit Obvious Patterns of Change in the United Kingdom
Figure 11. Domestic Firms Employ More Workers in Most Economies for Each Dollar of Equity
Figure 12. Qualitative Result Survives if FDI Firms are Defined Using 50 Percent Threshold
Figure 13. The Result Changes for Some but Remains Similar for Most Economies if SPEs are Removed from Only FDI Firms
Figure 14. The Result Remains Similar for Most Economies if SPEs Are Defined as Firms in Lower Five Percentile of the Number of Employees
Figure 15. The Size of Finance Sector Does Not Tell Much About Difference in Employment per Asset
Figure 16. Switcher’s Analysis for Russia
Figure 17. Switcher’s Analysis for Germany
Figure 18. Switcher’s Analysis for All Firms in All the Countries in the Sample