Does FDI Bring Good Jobs to Host Countries?

By B. Javorcik. 2012

169 citations recorded by the source corpus.

Are jobs created by foreign investors good jobs? The evidence reviewed in this article is consistent with the view that jobs created by FDI are good jobs, both from the worker's and the country's perspective. From the worker's perspective, this is because such jobs are likely to pay higher wages than jobs in domestic firms, at least in developing countries, and because foreign employers tend to offer more training than local firms do. From the countrys perspective, jobs in foreign affiliates are good jobs because FDI inflows tend to increase the aggregate productivity of the host country.

Subfields: Economics and Econometrics, Sociology and Political Science, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/deb4588b024dd98a21771dcf49e8ac6873ef9651

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Citations in the corpus

Trouble in the Making?: The Future of Manufacturing-Led Development (2017, background): “In addition to the transfer of technologies and management practices to local firms in developing countries, deeper global integration through trade and FDI links have created high-paid jobs, notably by creating backward and forward linkages (Gorg and Strobl 2001, Javorcik 2015).”
Do Global Value Chains Enhance Economic Upgrading? A Long View (2020, background): “A large and related literature has investigated FDI spillovers and arrives at a broad consensus in favour of positive productivity spillovers to industries that supply multinationals through backward linkages (Javorcik, 2014), with little evidence for other channels though (Iršová & Havránek, 2013).”
How important is GVC participation to export upgrading?* (2021, background): “In line with this but not directly examining export upgrading, Javorcik (2014) reported high positive productivity spillovers through Foreign Direct Investments (FDI) to firms and industries through backward linkages and less so for other channels (Iršová & Havránek, 2013).”
Stock market liberalization and innovation (2021, unknown): “…that through inflows of FDI, foreign acquirers encourage local firms to innovate by facilitating technology transfer to local markets (Guadalupe, Kuzmina, and Thomas, 2012) and allowing these firms to hire and utilize high quality employees (Javorcik, 2015), who are essential to innovative firms.”