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 perspe...

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Main Author:	Javorcik, Beata S.
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2014
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 http://hdl.handle.net/10986/20520

id	okr-10986-20520
recordtype	oai_dc
spelling	okr-10986-205202021-04-23T14:03:56Z Does FDI Bring Good Jobs to Host Countries? Javorcik, Beata S. 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 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. 2014-11-12T21:47:19Z 2014-11-12T21:47:19Z 2014-06 http://documents.worldbank.org/curated/en/2014/06/20269544/fdi-bring-good-jobs-host-countries http://hdl.handle.net/10986/20520 English en_US Policy Research Working Paper;No. 6936 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	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
spellingShingle	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 Javorcik, Beata S. Does FDI Bring Good Jobs to Host Countries?
relation	Policy Research Working Paper;No. 6936
description	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.
format	Publications & Research :: Policy Research Working Paper
author	Javorcik, Beata S.
author_facet	Javorcik, Beata S.
author_sort	Javorcik, Beata S.
title	Does FDI Bring Good Jobs to Host Countries?
title_short	Does FDI Bring Good Jobs to Host Countries?
title_full	Does FDI Bring Good Jobs to Host Countries?
title_fullStr	Does FDI Bring Good Jobs to Host Countries?
title_full_unstemmed	Does FDI Bring Good Jobs to Host Countries?
title_sort	does fdi bring good jobs to host countries?
publisher	World Bank, Washington, DC
publishDate	2014
url	http://documents.worldbank.org/curated/en/2014/06/20269544/fdi-bring-good-jobs-host-countries http://hdl.handle.net/10986/20520
_version_	1764445587906756608

Does FDI Bring Good Jobs to Host Countries?

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