Labor market institutions and firms’ location choices

Delbecque, Vincent; Méjean, Isabelle; Patureau, Lise

doi:10.1007/s10290-013-0173-2

Cited by 14 publications

(18 citation statements)

References 24 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Using the six indicators, the performance of each African country the four companies entered between 1996 and 2015 was captured in Tables . These indicators are considered to be some of the most empirically robust and comprehensive measures of governance and have been widely used by scholars, including Delbecque, Méjean, and Patureau (); Du (); and Zaaruka and Fedderke ().…”

Section: Methodsmentioning

confidence: 99%

Institutions and the location strategies of South African firms in Africa

White

Kitimbo

Rees

2018

Thunderbird Intl Bus Rev

View full text Add to dashboard Cite

This study explores the influence of institutions on the location strategies of firms in Africa.Specifically, the research examines the effect of governance infrastructure, a country's overall public institutions and policies, on the expansion strategies of three South African firms as they entered selected African countries between 1996 and 2015. These firms include SABMiller, MTN, and Massmart. The study makes use of structured interviews with senior directors of the three firms, mini case studies, and the World Bank's Worldwide Global Governance Indicators, in an effort to understand the impact of institutions, or lack thereof, on these companies' location choices. Results suggest that by and large, the quality of formal institutions did not have a direct effect on the location decisions of the three firms in this study, and that these firms found ways to mitigate the so-called institutional voids.

show abstract

Section: Methodsmentioning

confidence: 99%

Institutions and the location strategies of South African firms in Africa

White

Kitimbo

Rees

2018

Thunderbird Intl Bus Rev

View full text Add to dashboard Cite

show abstract

“…The main advantage of this proxy is that it presents a general index of labour regulations and various specific indexes that measure certain dimensions of the labour market (e.g., impact of minimum wage and unemployment benefits). However, these indexes are based on subjective information (Delbecque, Méjean and Patureau 2014).…”

Section: Measures Of Labour Flexibilitymentioning

confidence: 99%

“…In turn, Holger Görg (2005) and Gerda Dewit, Holger Görg and Catia Montagna (2009), showed through a macroeconomic analysis that labour market flexibility has a positive effect on FDI attraction. Recently, several studies (e.g., Mogab, Kishan and Vacaflores 2013;William W. Olney 2013;Vincent Delbecque, Isabelle Méjean and Lise Patureau 2014) based on microeconomic data like Javorcik and Spatareanu (2005) highlight that labour market institutions influence FDI inflows. Despite the relevance of these studies, most use microeconomic data and/or focus on small groups of countries.…”

Section: Introductionmentioning

confidence: 99%

Labour market flexibility and FDI attraction: A macroeconomic analysis

Oliveira

Forte

2021

Panoeconomicus

View full text Add to dashboard Cite

Foreign direct investment is one mode of entry into international markets that can provide important benefits to host economies. For this reason, policymakers have sought to apply policies that attract foreign direct investment. Although there is extensive and relevant literature that explores the determinants of foreign direct investment, few studies exist that focus on the relationship between labour market flexibility and foreign direct investment; furthermore, most of these are firm-level studies and use old data. Thus, this study aims to analyze the influence of labour market flexibility on foreign direct investment based on macroeconomic data for a set of 180 countries and a relatively recent period of analysis (2004-2009). Using econometric techniques with panel data, the results show that labour market flexibility enhances the attraction of foreign direct investment. In particular, the rigidity of working hours is the dimension of labour market regulations that most negatively affects the attraction of foreign direct investment. Based on the control variables used, we found that the economic and financial incentives, trade barriers, the growth and the size of the market and the level of human capital are important determinants in the explanation of foreign direct investment patterns.

show abstract

“…The conditional logit model will assess how the features of the regions affect affiliates' likelihood of choosing them as a location. It is more appropriate than the multinomial logit which rather focuses on the role of individual characteristics in matching with certain categories of a dependent variable (Delbecque et al, 2014). In computing the likelihood though, the CLM will not take into account regions that do not host any French affiliates.…”

Section: The Profit Equation For Foreign Affiliatesmentioning

confidence: 99%

“…This is specially true for the spillover variables. Indeed, using contemporaneous information for them would imply explaining one particular investment by a variable that has been constructed using information on that investment (Delbecque et al, 2014). It is challenging to obtain data on GDP at a regional level.…”

Section: Estimation Strategy and Datamentioning

confidence: 99%