IDEAS home Printed from https://ideas.repec.org/a/taf/apeclt/v22y2015i3p195-198.html
   My bibliography  Save this article

Do credit constraints reduce foreign jobs? A note on foreign direct employment

Author

Listed:
  • Jordi Paniagua
  • Juan Sapena

Abstract

This article studies the effect of credit constraints on the jobs created by multinational enterprises in host countries. Although most FDI is labour intensive, few studies delve into the determinants of foreign direct employment (FDE). This article constructs a model of limited commitment between the financed and financing parties to explain how FDE is affected by financial frictions. Moreover, this study examines FDE's determinants empirically on a global data set including FDE data from 161 countries during 2003-2010 by means of the gravity equation. Results show that credit constraints during the Great Recession roughly halved FDE, tripling the effect on FDI and suggesting that domestic jobs slightly outpaced foreign jobs.

Suggested Citation

  • Jordi Paniagua & Juan Sapena, 2015. "Do credit constraints reduce foreign jobs? A note on foreign direct employment," Applied Economics Letters, Taylor & Francis Journals, vol. 22(3), pages 195-198, February.
    • Handle: RePEc:taf:apeclt:v:22:y:2015:i:3:p:195-198
    DOI: 10.1080/13504851.2014.934420
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/13504851.2014.934420
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/13504851.2014.934420?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Maria T. Costa-Campi, Jordi Paniagua, and Elisa Trujillo, 2018. "Is energy market integration a green light for FDI?," The Energy Journal, International Association for Energy Economics, vol. 0(Special I).
    2. Maria Teresa Costa-Campi & Jordi Paniagua & Elisa Trujillo-Baute, 2015. "Are energy market integrations a green light for FDI?," Working Papers 2015/18, Institut d'Economia de Barcelona (IEB).
    3. Jordi Paniagua, 2016. "A note on implementing gravity datasets with abundant zeros," Economics Bulletin, AccessEcon, vol. 36(1), pages 268-280.
    4. Paniagua, Jordi & Korzynski, Pawel & Mas-Tur, Alicia, 2017. "Crossing borders with social media: Online social networks and FDI," European Management Journal, Elsevier, vol. 35(3), pages 314-326.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:apeclt:v:22:y:2015:i:3:p:195-198. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEL20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.