Resource title

Multinational companies and indirect employment : measurement and evidence

Resource image

image for OpenScout resource :: Multinational companies and indirect employment : measurement and evidence

Resource description

This study suggests a new approach towards measuring the indirect employment effects of multinational companies (MNCs) using a simple Cobb-Douglas production function. Based on the assumption that domestic sales by indigenous firms in a sector are supplies for multinationals in that sector rather than final goods, indirect employment effects are measured as the effect of an increase in domestically purchased inputs on employment in indigenously-owned suppliers. Applying this measure to data for the electronics sector in Ireland we find that there have been positive indirect effects of MNCs on employment in indigenous firms. The value of the estimated coefficients depends somewhat on the specification of the model estimated but the standard specification suggests that a 10% increase in domestically sold output by indigenous firms leads to an employment growth of around 2% in these firms.

Resource author

Holger Görg

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/2504

Resource license

Adapt according to the presented license agreement and reference the original author.