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Firm Employment Resilience and FDI: Evidence from Italy

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  • FERRAGINA, Anna Maria

    (CELPE - Centre of Labour Economics and Economic Policy, University of Salerno - Italy)

  • MAZZOTTA, Fernanda

    (CELPE - Centre of Labour Economics and Economic Policy, University of Salerno - Italy)

Abstract

Making use of an original data set we investigate the employment dynamics of a panel of Italian manufacturing firms over 2002-2010, allowing the global crisis to impact differently on firms growth trajectories according to firm involvement in FDI, controlling for firm size, age, financial conditions. We estimate a GMM System dynamic panel model and investigate whether foreing multinational firms show a different path of employment adjustment during the 2008 Global Re-cession. This paper is the first to test this issue for Italy and follows the benchmarking literaure on other countries. The results on a policy ground support the idea that FDI has no impact on employment resilience.

Suggested Citation

  • FERRAGINA, Anna Maria & MAZZOTTA, Fernanda, 2017. "Firm Employment Resilience and FDI: Evidence from Italy," CELPE Discussion Papers 152, CELPE - CEnter for Labor and Political Economics, University of Salerno, Italy.
    • Handle: RePEc:sal:celpdp:0152
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    More about this item

    Keywords

    FDI; Employment adjustment; Dynamic panel analysis; System GMM;
    All these keywords.

    JEL classification:

    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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