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Foreign Ownership and Employment Growth in a Developing Country

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Author

  • Robert E Lipsey
  • Fredrik Sjöholm
  • Jing Sun

Summary, in English

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.

Publishing year

2013

Language

English

Pages

1133-1147

Publication/Series

Journal of Development Studies

Volume

49

Issue

8

Document type

Journal article

Publisher

Taylor & Francis

Topic

  • Economics

Keywords

  • Foreign Direct Investment
  • Employment
  • Indonesia
  • Acquisitions

Status

Published

ISBN/ISSN/Other

  • ISSN: 0022-0388