Chung-Hua Institution for Economic Research
No. 75 Chang-Hsing Street
Taipei, Taiwan, 106
REPUBLIC OF CHINA
NBER Working Papers and Publications
|August 2005||The Effect of Overseas Investment on Domestic Employment |
with Tain-Jy Chen
in International Trade in East Asia, NBER-East Asia Seminar on Economics, Volume 14, Takatoshi Ito and Andrew K. Rose, editors
|December 2003||The Effects of Overseas Investment on Domestic Employment|
with Tain-Jy Chen: w10156
In this paper, we study the effects of FDI on domestic employment by examining the data of Taiwan's manufacturing industry. Treating domestic production and overseas production as two distinctive outputs from a joint production function, we may estimate the effect of overseas production on the demand for domestic labor. We found that overseas production generally reduces the demand for domestic labor as overseas products serve as a substitute for primary inputs in domestic production (substitution effect). But overseas production also allows the investor to expand its domestic output through enhanced competitiveness. The expanded domestic output leads to more employment at home (output effect). The net effect of FDI on domestic employment is a combination of substitution and output effects...
Published: Ito, Takatoshi and Andrew K. Rose (eds.) International Trade in East Asia NBER-East Asia Seminar on Economics, vol. 14. Chicago and London: University of Chicago Press, 2005.
|January 2000||Foreign Direct Investment and Industrial Restructuring: The Case of Taiwan's Textile Industry|
with Tain-Jy Chen
in The Role of Foreign Direct Investment in East Asian Economic Development, NBER-EASE Volume 9, Takatoshi Ito and Anne O. Krueger, editors