Staying Home or Moving Away? The Effect of Restructuring on Employment in Multinational Headquarters and Their Affiliates

Abraham, Filip; Goesaert, Tim; Konings, Jozef

doi:10.2139/ssrn.1586778

Cited by 4 publications

(2 citation statements)

References 13 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The academic literature exploring this issue is still very scarce. Recently, Abraham et al (2010) found that Belgian MNEs' headquarters employ on average more people than their affiliates. Furthermore, employment growth in Belgian MNEs' headquarters is on average 2.5% higher than in their affiliates.…”

Section: Strategic Role Productivity and Employmentmentioning

confidence: 99%

Foreign Investors in The Netherlands: Heterogeneous Employment and Productivity Effects

Fortanier

Moons

2011

De Economist

View full text Add to dashboard Cite

Recent academic research suggests that the effects of inward foreign direct investment for productivity and employment may vary across foreign investors with different characteristics. Using a newly created dataset that integrates micro-level information from The Netherlands Foreign Investment Agency and Statistics Netherlands, this paper explores the role of several of these characteristics, including e.g. the country of origin, activities and tasks, age and strategic role of foreign affiliates in The Netherlands in the 2000-2007 period. Our analysis shows that important employment and productivity differences exist for nearly all these dimensions.

show abstract

Section: Strategic Role Productivity and Employmentmentioning

confidence: 99%

Foreign Investors in The Netherlands: Heterogeneous Employment and Productivity Effects

Fortanier

Moons

2011

De Economist

View full text Add to dashboard Cite

show abstract

“…This negative effect may be amplified by a home bias. Under adverse economic conditions, multinationals tend to safeguard employment in home‐country headquarters compared to more distant plants located abroad (see Abraham et al., ; for evidence for Belgium, Landier et al., ; Cappariello et al., ). This implies that foreign‐owned firms, which are less deeply rooted into the local economy, are less reluctant to close down their activities than domestic MNFs.…”

Section: Introductionmentioning

confidence: 99%

(Not So) Easy Come, (Still) Easy Go? Footloose Multinationals Revisited

et al. 2015

View full text Add to dashboard Cite

The central question of this paper is to test whether multinational firms (MNFs) are more likely to exit the local market than domestic firms. Using firm‐level data for Belgium, we estimate a random effects probit model taking into account the endogeneity of firm size, total factor productivity (TFP) and sunk costs in firm exit. Our results highlight two features of the ‘footloose’ nature of MNFs. First, controlling for firm and sector characteristics, the exit probability of MNFs is larger than that of domestic firms. Second, MNFs have a lower sensitivity to TFP and size than do domestic firms. This means that an improvement in economic performance on the local market will not prevent a multinational from closing its local plant as much as it would for a domestic firm.

show abstract