This article investigates the employment development of Czech-based firms in German ownership in the years around the … Great Recession of 2008/2009. The intense involvement of German firms in the economy of the neighboring country via foreign … years before the crisis, firms with German capital exhibited a noticeably more positive employment development. The results …

closures sales of nearby firms decreased by 6 percentage points and employment decreased by 3 percentage points on average … also decreased employment more than average, suggesting that input-output linkages play an important role in the … propagation of negative shocks. In contrast, firms in the industry of the closing plant increased their employment, suggesting …