Publication
Title
The effects of Belgian outward direct investment in European high-wage and low-wage countries on employment in Belgium
Author
Abstract
Purpose The paper aims at providing evidence on the impact on employment of outward foreign direct investment, particularly from developed countries into low-wage countries, which is a major concern in many developed countries. Design/methodology/approach The effects of foreign production undertaken by Belgian foreign-oriented companies on employment in Belgium are investigated by performing econometric tests for complementarity or substitution between home and affiliate employment. The data are from the Amadeus database and consist of a sample of 254 Belgian parent companies with foreign affiliates in low-wage and other high-wage European countries during the 1999-2007 period. Findings The results show that, given the size of parent production in the home country, Belgian multinational enterprises with foreign affiliates in higher-wage European countries tend to employ more labour at home the more they produce in the host country. This probably reflects the needs of foreign affiliates in higher-wage European countries for management and supervisory services from parent companies. Another explanation might be that Belgian outward FDI is largely vertical. In contrast, no evidence is found about employment reallocation between parents and affiliates operating in lower-wage European countries. Originality/value The paper provides evidence on overall effects on employment in Belgium of its outward foreign direct investment for the period 1999-2007, i.e. using the most recent data available. In contrast to many other stud
Language
English
Source (journal)
International journal of manpower. - Bingley
Publication
Bingley : 2011
ISSN
0143-7720
Volume/pages
32:3(2011), p. 300-312
ISI
000293935000004
Full text (Publisher's DOI)
Full text (publisher's version - intranet only)
UAntwerpen
Faculty/Department
Research group
Publication type
Subject
Affiliation
Publications with a UAntwerp address
External links
Web of Science
Record
Identification
Creation 05.09.2011
Last edited 17.12.2017
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