Outbound Foreign Direct Investment (FDI) Motivation and Domestic Employment by Multinational Enterprises (MNEs)
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AbstractThis study investigates whether and how outbound foreign direct investment (FDI) boosts or reduces domestic employment by multinational enterprises(MNEs). Based on analyses o fa firm-level sample of 18,252 subsidiary-year cases of Japanese MNEs in 59 countries from 1996 to2010, the findings indicate that outbound FDI motivated by (1) market seeking for scale and scope expansion, (2) natural resource seeking, or (3) strategic asset seeking tends to serve as a“strategic complement” that enhances domestic employment by MNEs. However, outbound FDI motivated by (4) market seeking associated with declines in domestic demand or (5) labor re-source seeking tends to act as a “strategic substitute” that reduces domestic employment by MNEs. The implications for theory, practice, and policy making are discussed.
Acceptance Date25/11/2018
All Author(s) ListEunsuk Hong, In Hyeock (Ian) Lee, Shige Makino
Journal nameJournal of International Management
LanguagesEnglish-United States
KeywordsOutbound FDI, Domestic employment, Strategic substitute, Strategic complement, FDI motivations, Japanese MNEs

Last updated on 2021-22-09 at 01:36