Does FDI Bring Good Jobs to Host Countries?

This study examines whether jobs created as a result of foreign direct investment (FDI) inflows can be considered to be good jobs both from the worker’s and the country’s perspective. For the worker, such jobs are likely to pay higher wages than jobs in indigenous firms in developing countries, and...

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Bibliographic Details
Main Author:	Javorcik, Beata
Format:	Working Paper
Language:	en_US
Published:	World Bank, Washington, DC 2013
Subjects:	Economic Growth Macroeconomics Foreign Direct Investment Labor Jobs Poverty Reduction
Online Access:	http://hdl.handle.net/10986/12132

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recordtype	oai_dc
spelling	okr-10986-121322021-04-23T14:02:59Z Does FDI Bring Good Jobs to Host Countries? Javorcik, Beata Economic Growth Macroeconomics Foreign Direct Investment Labor Jobs Poverty Reduction This study examines whether jobs created as a result of foreign direct investment (FDI) inflows can be considered to be good jobs both from the worker’s and the country’s perspective. For the worker, such jobs are likely to pay higher wages than jobs in indigenous firms in developing countries, and foreign employers tend to offer more training than local firms. From the country’s perspective, jobs in foreign affiliates are good, because FDI inflows tend to increase the aggregate productivity of the host country. Existence of positive externalities associated with FDI may suggest that government intervention in the form of subsidies aimed at increasing FDI inflows may be warranted, but investment promotion activities may offer a less costly course of action, because obtaining information on investment opportunities in developing countries tends to be more difficult than gathering data in industrialized economies. Once FDI enters the country, governments may wish to maximize the productivity benefits by assisting local firms with becoming suppliers to foreign affiliates by extending subsidized credit to prospective suppliers of foreign affiliates or by setting up supplier development programs to bring local firms and foreign affiliates together. 2013-01-16T22:02:34Z 2013-01-16T22:02:34Z 2012-10 http://hdl.handle.net/10986/12132 en_US Background Paper for the World Development Report 2013; CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Working Paper Publications & Research Europe and Central Asia Czech Republic Latvia Romania
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	en_US
topic	Economic Growth Macroeconomics Foreign Direct Investment Labor Jobs Poverty Reduction
spellingShingle	Economic Growth Macroeconomics Foreign Direct Investment Labor Jobs Poverty Reduction Javorcik, Beata Does FDI Bring Good Jobs to Host Countries?
geographic_facet	Europe and Central Asia Czech Republic Latvia Romania
relation	Background Paper for the World Development Report 2013;
description	This study examines whether jobs created as a result of foreign direct investment (FDI) inflows can be considered to be good jobs both from the worker’s and the country’s perspective. For the worker, such jobs are likely to pay higher wages than jobs in indigenous firms in developing countries, and foreign employers tend to offer more training than local firms. From the country’s perspective, jobs in foreign affiliates are good, because FDI inflows tend to increase the aggregate productivity of the host country. Existence of positive externalities associated with FDI may suggest that government intervention in the form of subsidies aimed at increasing FDI inflows may be warranted, but investment promotion activities may offer a less costly course of action, because obtaining information on investment opportunities in developing countries tends to be more difficult than gathering data in industrialized economies. Once FDI enters the country, governments may wish to maximize the productivity benefits by assisting local firms with becoming suppliers to foreign affiliates by extending subsidized credit to prospective suppliers of foreign affiliates or by setting up supplier development programs to bring local firms and foreign affiliates together.
format	Publications & Research :: Working Paper
author	Javorcik, Beata
author_facet	Javorcik, Beata
author_sort	Javorcik, Beata
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	2013
url	http://hdl.handle.net/10986/12132
_version_	1764419144399192064

Does FDI Bring Good Jobs to Host Countries?

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