Location choice of German multinationals in the Czech Republic

Hecht, Veronika

doi:10.1111/ecot.12131

Cited by 9 publications

(8 citation statements)

References 45 publications

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“…Having described the data, we now turn to the analysis of the effects of FDI on firm employment. Thus far, Figure 1 has shown that relative employment evolves negatively for MNEs, 12 Moritz et al (2020), Hecht (2017), andBuch et al (2005, p. 59 f.) note that the average German affiliate in CEECs is remarkably small.…”

Section: Large Firms Smesmentioning

confidence: 97%

Foreign direct investment and onshore employment dynamics: Evidence from German firms with affiliates in the Czech Republic

2021

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In this paper, we revisit questions about the onshore employment effects of firms that conduct foreign direct investment (FDI) in countries with substantially lower average wages. Our results derive from the use of rich administrative records on the universe of employees in German multinational enterprises (MNEs) that were active in the Czech Republic in 2010. Compared with former studies, the unique data set in this study includes a much higher fraction of small‐ and medium‐sized firms and leads to strikingly different results for service MNEs. Applying coarsened exact matching for firms and an event‐study design, we show that the domestic employment growth of MNEs decreases relative to that of non‐MNEs and that the affected workers are those with low or medium educational attainment in the manufacturing sector and with medium or high educational attainment in the service sector. Regarding workers’ tasks, our results do not show that FDI affects routine jobs beyond a worker's skill level.

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Section: Large Firms Smesmentioning

confidence: 97%

Foreign direct investment and onshore employment dynamics: Evidence from German firms with affiliates in the Czech Republic

2021

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“…Additionally, Arndt, Buch and Mattes (2012) and Hecht (2015) resort to different measures related to the labour market. Arndt, Buch and Mattes (2012) include dummy variables that assume the value 1 if a firm indicates "labour market frictions" and 0 otherwise.…”

Section: Table 1 Synthesis Of the Studies At Firm And Industry Levelsmentioning

confidence: 99%

“…Results concerning the other frictions are not statistically significant. In turn, Hecht (2015) use two measures of labour market features: labour costs and the regional unemployment rate. The author concludes that the influence of these features differs according to the characteristics of the investment.…”

Section: Table 1 Synthesis Of the Studies At Firm And Industry Levelsmentioning

confidence: 99%

Labour market flexibility and FDI attraction: A macroeconomic analysis

Oliveira

Forte

2021

Panoeconomicus

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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.

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“…Foreign-owned companies are generally considered to be holders of know-how, technology, new management methods and skills, initiators of innovation activities, strategic employers, and exporters (Kotíková, 2019). Typically, foreign owners are driven by agglomeration economies, as was found by Hecht (2017) in the German investors' case in the Czech Republic.…”

Section: Literature Reviewmentioning

confidence: 99%

Enterprise ownership patterns in the least developed districts of Slovakia

Csabay

Vincúrová

Stoch

et al. 2021

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Research background: The literature overview shows a blank space regarding the effects of ownership on the determination of enterprises' spatial distribution. Various papers identify differences between determinants of the spatial distribution of foreign direct investments, exporters in foreign ownership, and domestically owned exporters; however, they mostly agree on the role of big cities, economic centres, and state of infrastructure as well as historical patterns. Purpose of the article: The article focuses on the spatial distribution analysis of enterprise units from their owner's perspective on the empirical evidence from all 79 districts of the Slovak Republic. Special attention is given to the category of the least developed districts. Methods: Within the presented article, the authors investigate the characteristics of the regional spatial distribution of business entities concerning standard ownership categories using the cluster analysis. The presented approach is twofold: firstly, the authors investigate the share of individual ownership types on the district level, and secondly, the number of enterprises by ownership categories is adjusted to 100,000 inhabitants. Cluster analysis and methods of spatial statistics are applied in both approaches. Findings & value added: The main results show a relation between the district's inclusion into the group of the least developed districts and enterprise ownership characteristics in these districts mainly through the relative underrepresentation of the secluded inland, foreign and international types of ownership, as well as their geographical clustering. The results of the presented research can be used in policy-making targeting business activity in underdeveloped districts. At the same time, the results provide basis for limited theoretical generalisations based on a single-country case study with regard to principles of business ownership structures development.

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Location choice of German multinationals in the Czech Republic

Cited by 9 publications

References 45 publications

Foreign direct investment and onshore employment dynamics: Evidence from German firms with affiliates in the Czech Republic

Foreign direct investment and onshore employment dynamics: Evidence from German firms with affiliates in the Czech Republic

Labour market flexibility and FDI attraction: A macroeconomic analysis

Enterprise ownership patterns in the least developed districts of Slovakia

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