How Investing Abroad Can Create Jobs at Home
There is an ongoing debate about the employment effects of foreign direct investment (FDI). A new study, published in the Journal of International Business Policy (JIBP), by Vera Kunczer and her co-author Guus Hendriks offer a new perspective to this important discussion.
The study finds that:
• Larger OFDI investments (relative to firm size) are more likely to create jobs at home.
• The effect is strongest for greenfield investments, state-owned firms, and firms with a strong home-region focus.
• Employment policies should consider investment size relative to the firm and firms' organizational capacity, not just the absolute value of investments.
The findings should contribute to a more nuanced understanding of how FDI shapes employment outcomes and informs both research and policy.
The article is available as open access and can be downloaded here.