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Foreign Firms and Chinese Employment

Karlsson, Sune; Lundin, Nannan; Sjöholm, Fredrik LU and Ping, He (2009) In World Economy 32(1). p.178-201
Abstract
This paper examines the effect of foreign direct investment (FDI) on employment in the Chinese manufacturing sector. As one of the world's largest recipients of FDI, China has arguably benefited from foreign multinational enterprises in various respects. However, one of the main challenges for China, and other developing countries, is job creation, and the effect of FDI on employment is uncertain. The effect depends on the amount of jobs created within foreign firms as well as the effect of FDI on employment in domestic firms. We analyse FDI and employment in China using a large sample of manufacturing firms for the period 1998–2004. Our results show that FDI has positive effects on employment growth. The relatively high employment growth... (More)
This paper examines the effect of foreign direct investment (FDI) on employment in the Chinese manufacturing sector. As one of the world's largest recipients of FDI, China has arguably benefited from foreign multinational enterprises in various respects. However, one of the main challenges for China, and other developing countries, is job creation, and the effect of FDI on employment is uncertain. The effect depends on the amount of jobs created within foreign firms as well as the effect of FDI on employment in domestic firms. We analyse FDI and employment in China using a large sample of manufacturing firms for the period 1998–2004. Our results show that FDI has positive effects on employment growth. The relatively high employment growth in foreign firms is associated with their firm characteristics and their high survival rate. Employment growth is also relatively high in private domestic Chinese firms. There also seems to be a positive indirect effect of FDI on employment in private domestically-owned firms, presumably caused by spillovers. (Less)
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author
publishing date
type
Contribution to journal
publication status
published
subject
in
World Economy
volume
32
issue
1
pages
24 pages
publisher
Wiley-Blackwell
external identifiers
  • scopus:59549104381
ISSN
1467-9701
DOI
10.1111/j.1467-9701.2009.01162.x
language
English
LU publication?
no
id
3e280762-0506-478a-a250-9d7b89aa3c4e
date added to LUP
2017-10-09 11:54:28
date last changed
2017-10-15 04:55:42
@article{3e280762-0506-478a-a250-9d7b89aa3c4e,
  abstract     = {This paper examines the effect of foreign direct investment (FDI) on employment in the Chinese manufacturing sector. As one of the world's largest recipients of FDI, China has arguably benefited from foreign multinational enterprises in various respects. However, one of the main challenges for China, and other developing countries, is job creation, and the effect of FDI on employment is uncertain. The effect depends on the amount of jobs created within foreign firms as well as the effect of FDI on employment in domestic firms. We analyse FDI and employment in China using a large sample of manufacturing firms for the period 1998–2004. Our results show that FDI has positive effects on employment growth. The relatively high employment growth in foreign firms is associated with their firm characteristics and their high survival rate. Employment growth is also relatively high in private domestic Chinese firms. There also seems to be a positive indirect effect of FDI on employment in private domestically-owned firms, presumably caused by spillovers.},
  author       = {Karlsson, Sune and Lundin, Nannan and Sjöholm, Fredrik and Ping, He},
  issn         = {1467-9701},
  language     = {eng},
  number       = {1},
  pages        = {178--201},
  publisher    = {Wiley-Blackwell},
  series       = {World Economy},
  title        = {Foreign Firms and Chinese Employment},
  url          = {http://dx.doi.org/10.1111/j.1467-9701.2009.01162.x},
  volume       = {32},
  year         = {2009},
}