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http://dspace.mediu.edu.my:8181/xmlui/handle/10419/3039| Title: | Should I stay or should I go? : A note on employment protection, domestic anchorage, and FDI |
| Keywords: | D80 J80 F23 ddc:330 uncertainty , employment protection , foreign direct investment , domestic anchorage Arbeitsrecht Kündigungsschutz Standortfaktor Direktinvestition Auslandsproduktion Schätzung Theorie OECD-Staaten |
| Issue Date: | 16-Oct-2013 |
| Publisher: | Forschungsinstitut zur Zukunft der Arbeit, Bonn |
| Description: | This paper examines how employment protection legislation affects location decisions of multinationals. Based on a simple theoretical framework, we estimate an empirical model, using OECD-data on bilateral FDI-flows and employment protection indices. We find that, while an ?unfavourable? employment protection differential between a domestic and a foreign location is inimical to foreign direct investment (FDI), a high domestic level of employment protection tends to discourage outward FDI. The results are in line with our conjecture that strict employment protection in the firm?s home country makes firms reluctant to relocate abroad and keeps them ?anchored? at home. |
| URI: | http://koha.mediu.edu.my:8181/xmlui/handle/10419/3039 |
| Other Identifiers: | IZA discussion papers Forschungsinstitut zur Zukunft der Arbeit, Bonn 845 http://hdl.handle.net/10419/3039 ppn:368833836 ppn:368833836 |
| Appears in Collections: | EconStor |
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