Kalambaden, Preetha; Steffen, Daniel (2020). The Effect of Outward Foreign Direct Investments on Home Employment: Evidence using Swiss Firm-Level Data (CRED Research Paper 28). Bern: CRED Center for Regional Economic Development
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This paper investigates the effect of outward foreign direct investments (FDI) on home employment in an understudied context - a small economy with a large relative outward FDI stock. Using Swiss firm-level data we construct a novel instrumental variable to identify a direct negative displacement effect and an indirect positive output effect. We find that FDI to high-income countries have a positive effect on domestic jobs, while FDI to lower middle-income countries are associated with a loss of domestic jobs. Further, FDI to low-income countries tend to have a positive effect on home employment. Overall, the effect of outward FDI on home employment is small and tends to create more domestic jobs than it relocates.
Item Type: |
Working Paper |
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Division/Institute: |
03 Faculty of Business, Economics and Social Sciences > Department of Economics |
UniBE Contributor: |
Kalambaden, Preetha, Steffen, Daniel |
Subjects: |
300 Social sciences, sociology & anthropology > 330 Economics |
Series: |
CRED Research Paper |
Publisher: |
CRED Center for Regional Economic Development |
Language: |
English |
Submitter: |
Dino Collalti |
Date Deposited: |
13 Jan 2021 16:44 |
Last Modified: |
05 Dec 2022 15:45 |
BORIS DOI: |
10.48350/151257 |
URI: |
https://boris.unibe.ch/id/eprint/151257 |
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