2013

Foreign Ownership and Employment Growth in a Developing Country

Reprint No. 2013:29

Author(s): Robert E. Lipsey, Fredrik Sjöholm and Jing SunYear: 2013 Title: Journal of Development Studies Volume (No.): 49 (8) Pages: 1133–1147
Online article (restrictions may apply)
Preliminary version


Many developing countries would like to increase employment in the formal sectors. One way to accomplish this goal may be to encourage the entrance of foreign firms. We examine employment growth in Indonesian plants taken over by foreign owners from domestic ones. We also examine the effect of FDI during different trade regimes and the timing of employment effects following an acquisition. For plants that change the nationality of ownership, we find a strong effect of shifts from domestic to foreign ownership in raising the growth rate of employment, but no significant effects of shifts from foreign to domestic ownership.


Reference:
Lipsey, Robert E., Fredrik Sjöholm och Jing Sun (2013), "Foreign Ownership and Employment Growth in a Developing Country". Journal of Development Studies 49(8), 1133–1147.

Fredrik Sjöholm

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Ph: +46 46 222 74 26
fredrik.sjoholm@nek.l...

Interdisciplinary European Studies

The European Union and the Return of the Nation State

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This book explores the complex and ever-changing relationship between the European Union and its member states. The recent surge in tension in this relationship has been prompted by the actions of some member state governments as they question fundamental EU values and principles and refuse to implement common decisions seemingly on the basis of narrowly defined national interests.

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