Community Research and Development Information Service - CORDIS


Labour Market Effects of European Foreign Investments (LABFDI), Final Report, EUR 21537

Project ID: HPSE-CT-1999-00017


The objective of this research project is to understand the labour market implications of foreign direct investment (FDI) and of the activities of Multinational firms (MNEs). There are good reasons to pursue this research objective. First it is questionable, whether MNEs and national firms are inherently different and behave differently in the labour market. Second, it is not clear what the effects of FDI on the level and on the characteristics of employment in home and host countries are. Third, it is not understood how and how far foreign investments do affect home and host economies in a broader sense. Fourth the role of policies in encouraging or discouraging FDI and particularly of labour market policies is still little understood. This research project provides answers to these questions. To do so it makes extensive use of newly constructed firm and sector level data bases, combining information on inward and outward investments with information on counterfactuals of domestic owned firms.

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