Does FDI Bring Good Jobs to Host Countries?

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 country s perspective, jobs in foreign affiliates are good jobs because FDI inflows tend to increase the aggregate productivity of the host country.

Bibliographic Details

Main Author:	Javorcik, Beata S.
Language:	English en_US
Published:	World Bank, Washington, DC 2014-06
Subjects:	ACCOUNTING, AGGREGATE PRODUCTIVITY, AVERAGE PRODUCTIVITY, AVERAGE WAGE, AVERAGE WAGES, BARGAINING, BARGAINING POWER, BENCHMARKING, CAPACITY BUILDING, COMPARATIVE ANALYSIS, COMPETITION POLICY, COMPETITORS, CONSUMERS, CROSS-COUNTRY EVIDENCE, DEMAND CURVE, DEVELOPMENT ECONOMICS, DEVELOPMENT POLICY, DISCOUNTED VALUE, DOMESTIC ENTERPRISES, DOMESTIC FIRM, DOMESTIC FIRMS, DOMESTIC WORKERS, DRIVERS, ECONOMETRIC ANALYSIS, ECONOMIC GROWTH, ECONOMIC POLICY, ECONOMIC RESEARCH, EDUCATIONAL ATTAINMENT, EMERGING MARKETS, EMPLOYEE, EMPLOYMENT, EMPLOYMENT OPPORTUNITIES, ENTERPRISE TRAINING, EQUILIBRIUM WAGES, EXPANSION, EXPORT MARKETS, EXTERNALITIES, EXTERNALITY, FDI, FEASIBILITY STUDIES, FINANCIAL MARKETS, FIRM LEVEL, FIRM PERFORMANCE, FIRM PRODUCTIVITY, FIRM STRUCTURE, FIRM-LEVEL PRODUCTIVITY, FOREIGN ACQUISITION, FOREIGN ACQUISITIONS, FOREIGN AFFILIATE, FOREIGN AFFILIATES, FOREIGN COMPANIES, FOREIGN DIRECT INVESTMENT, FOREIGN DIRECT INVESTMENTS, FOREIGN FIRMS, FOREIGN INVESTMENT, FOREIGN INVESTOR, FOREIGN INVESTORS, FOREIGN MARKETS, FOREIGN OWNERSHIP, FOREIGN-OWNED FIRMS, GENERAL EQUILIBRIUM, GLOBAL ECONOMY, HOST COUNTRIES, HOST COUNTRY, HOST ECONOMY, HUMAN CAPITAL, IMPORT SUBSTITUTION, INDUSTRIAL ECONOMICS, INNOVATIONS, INTERNATIONAL ECONOMICS, INTERNATIONAL TRADE, INVESTMENT PROMOTION, INVESTMENT PROMOTION AGENCIES, INVESTMENT PROMOTION AGENCY, INWARD FOREIGN DIRECT INVESTMENT, JOB CREATION, JOBS, JOINT VENTURE, JOINT VENTURES, LABOR DEMAND, LABOR FORCE, LABOR MARKET, LABOR MOBILITY, LABOR PRODUCTIVITY, LABOR TURNOVER, LABOUR, LABOUR COST, LIQUIDITY, LOCAL FIRM, LOCAL FIRMS, LOCAL LABOR MARKET, MANAGEMENT TECHNIQUES, MANUFACTURING FIRMS, MANUFACTURING SECTOR, MANUFACTURING SECTORS, MARGINAL PRODUCTIVITY, MARKET STRUCTURE, MOTIVATION, MULTINATIONAL, MULTINATIONAL COMPANIES, MULTINATIONAL CORPORATIONS, MULTINATIONAL ENTERPRISE, MULTINATIONAL ENTERPRISES, MULTINATIONALS, NEGATIVE EXTERNALITIES, OCCUPATIONS, OWNERSHIP CHANGE, PARENT COMPANIES, PECUNIARY EXTERNALITIES, PLANT CLOSURE, PLANT PRODUCTIVITY, POSITIVE EFFECTS, POSITIVE EXTERNALITIES, PRIOR WORK EXPERIENCE, PRODUCTION FACILITIES, PRODUCTION PROCESS, PRODUCTION WORKERS, PRODUCTIVE FIRMS, PRODUCTIVITY, PRODUCTIVITY DISTRIBUTION, PRODUCTIVITY EFFECT, PRODUCTIVITY EFFECTS, PRODUCTIVITY GAP, PRODUCTIVITY GROWTH, PRODUCTIVITY IMPROVEMENTS, PRODUCTIVITY LEVEL, PRODUCTIVITY LEVELS, REMUNERATIVE EMPLOYMENT, SERVICE PROVIDERS, SERVICE SECTOR, SKILL GROUP, SKILLED LABOR, SOCIAL COHESION, STABLE JOBS, SUPPLIER, SUPPLIERS, TECHNOLOGY SPILLOVERS, TECHNOLOGY TRANSFER, TOTAL EMPLOYMENT, TOTAL FACTOR PRODUCTIVITY, TRADE LIBERALIZATION, UNDERESTIMATES, VALUE ADDED, WAGE ADJUSTMENT, WAGE DIFFERENTIAL, WAGE EFFECT, WAGE EFFECTS, WAGE PREMIUM, WAGES, WHITE COLLAR WORKERS, WORKER, WORKER HETEROGENEITY,
Online Access:	http://documents.worldbank.org/curated/en/2014/06/20269544/fdi-bring-good-jobs-host-countries https://hdl.handle.net/10986/20520
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