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Austrian FDI in Central-Eastern Europe and Employment in the Home Market
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Aussenwirtschaft
- Article date:
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June 1, 2008
- Author:
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;
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Copyright informationCopyright Hochschule St. Gallen für Wirstchafts- und Socialwissenschaften Jun 2008. Provided by ProQuest LLC. (Hide copyright information)
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This paper investigates the impact of Austrian foreign direct investment on domestic employment in five new EU member states from Central and Eastern Europe (NMS5). We estimate both a static and a dynamic labour demand model using sector data for the period 1993-2004 where domestic employment depends on value added, real wage, the net capital stock and time effects. In particular, we investigate the potential complementary/ substitutive relationship between domestic and foreign affiliate employment of Austrian multinationals, disaggregated by two partner regions (that is, EU15 and NMS5). Estimates obtained using the static fixed-effects model show that domestic employment effects of foreign ...
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