Résumé
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). It estimates both a static and a dynamic labor 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 activities depend on the sector and the partner country (or region) considered.
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Extrait
Austrian Fdi in Central-Eastern Europe and Employment in the Home Market
1 Introduction
Since the beginning of the nineties, Austria has become one of the most important foreign direct investors in the Central and Eastern European Countries (CEEC).1 Employment in Austrian affiliates located in the CEEC increased from 50,000 to 266,000 in the period 1993-2004. In 2004, the employment share of foreign affiliates of Austrian multinationals in the CEEC as a share of total foreign employment was about 72 percent, which was the highest share among all OECD countries. Austrian FDI in the CEEC region has been strongest in the five new EU Member States (NMS5), which include the Czech Republic, Hungary, Poland, the Slovak Republic, and Slovenia. While outward FDI has provided important impetus to the internationalisation process of Austrian firms and proven to be an important source of competitive gains, firm growth, and restructuring, t...Voir le contenu complet de ce document
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