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While existing literature points to a positive impact of FDI on host countries’ growth, little is known about how inward FDI contributes to economic volatility in the host country. In this paper, we investigate the FDI-output growth volatility nexus focusing on manufacturing sectors of OECD...
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employment and investment decisions of multinationals producing intermediate inputs in developing countries. This is the case … even for risk neutral multinationals, as their profit function is non-linear due to price and productivity effects. For … of productivity shocks in an emerging market producing the intermediate inputs reduces the multinationals' expected …
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employment and investment decisions of multinationals producing intermediate inputs in developing countries. This is the case … even for risk neutral multinationals, as their profit function is non-linear due to price and productivity effects. For … of productivity shocks in an emerging market producing the intermediate inputs reduces the multinationals' expected …
Persistent link: https://www.econbiz.de/10012469306
Does more FDI make the world a riskier place for workers? We analyze whether an increase in multinational firms' activities is associated with an increase in firm-level employment volatility. We use a firm-level dataset for Germany which allows us to distinguish between purely domestic firms,...
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