publication . Research . Preprint . Article . 2007

Multinationals as stabilizers? Economic crisis and plant employment growth

Roberto Alvarez; Holger Görg;
Open Access English
  • Published: 01 Mar 2007
  • Publisher: Bonn: Institute for the Study of Labor (IZA)
This paper examines the link between multinational enterprises and employment growth at the plant-level. We investigate in detail the comparative response of multinationals and domestic firms to an economic crisis, using the empirical setting of a well defined case of economic slowdown in Chile as a natural experiment. In our empirical analysis we find that employment growth in manufacturing plants has been drastically reduced during the economic crisis. More importantly, we do not find evidence that multinationals react to the economic crisis differently than do domestic firms. Our findings hold in a number of robustness tests, in which we also investigate the ...
free text keywords: Wirtschaftskrise, Beschäftigungseffekt, Anlagenbau, Multinationales Unternehmen, Verarbeitendes Gewerbe, Schätzung, Chile, Multinationals, employment growth, plant survival, economic crisis, ddc:330, Access to finance, Multinational corporation, Natural experiment, Business, Employment growth, International trade, business.industry, International economics, Developing country, Economic slowdown
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