Arbeitspapier
Should I stay or should I go? A note on employment protection, domestic anchorage, and FDI
This paper examines how employment protection legislation affects location decisions of multinationals. Based on a simple theoretical framework, we estimate an empirical model, using OECD-data on bilateral FDI-flows and employment protection indices. We find that, while an ?unfavourable? employment protection differential between a domestic and a foreign location is inimical to foreign direct investment (FDI), a high domestic level of employment protection tends to discourage outward FDI. The results are in line with our conjecture that strict employment protection in the firm?s home country makes firms reluctant to relocate abroad and keeps them ?anchored? at home.
- Language
-
Englisch
- Bibliographic citation
-
Series: IZA Discussion Papers ; No. 845
- Classification
-
Wirtschaft
Information, Knowledge, and Uncertainty: General
Labor Standards: General
Multinational Firms; International Business
- Subject
-
uncertainty
employment protection
foreign direct investment
domestic anchorage
Arbeitsrecht
Kündigungsschutz
Standortfaktor
Direktinvestition
Auslandsproduktion
Schätzung
Theorie
OECD-Staaten
- Event
-
Geistige Schöpfung
- (who)
-
Dewit, Gerda
Görg, Holger
Montagna, Catia
- Event
-
Veröffentlichung
- (who)
-
Institute for the Study of Labor (IZA)
- (where)
-
Bonn
- (when)
-
2003
- Handle
- Last update
-
10.03.2025, 11:43 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Dewit, Gerda
- Görg, Holger
- Montagna, Catia
- Institute for the Study of Labor (IZA)
Time of origin
- 2003
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Should i stay or should i go? A note on employment protection, domestic anchorage and FDI
Fancy a stay at the Hotel California? Foreign direct investment, taxation and firing costs
Fancy a stay at the Hotel California? Foreign direct investment, taxation and exit costs
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