Does FDI increase labour market volatility at home?. Issue 20 (28th November 2022)

• Record Type: Journal Article
• Authors: Ashraf, Ayesha; Chaudhry, Muhammad Umar
• Is Part Of: Applied economics letters. Volume 29:Issue 20(2022)
• Page Start: 1944
• Page End: 1948
• Publication Date: 2022-11-28
• Subjects: GFDI -- cross-border M&A -- labour market volatility -- economic insecurity -- compensation hypothesis; F21 -- F62 -- F66; Economics -- Periodicals; Economics, Mathematical -- Periodicals; 330
• DOI: 10.1080/13504851.2021.1966366
• Languages: English
• ISSNs: 1350-4851

Abstract

ABSTRACT: This article examines the effect of outbound FDI on labour market volatility and, thereby, on economic insecurity in home countries of FDI distinguishing between greenfield FDI (GFDI) and cross-border mergers and acquisitions (M&A). Using the data up to 94 countries during the period 2003–2019, we find that outward GFDI stimulate economic insecurity by increasing volatility of employment. Cross-border M&A purchases, however, decrease the labour market volatility measured both in terms of volatility of employment and hours worked.