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| Author: | Navaretti, G.B. Castellani, D. Disdier, A-C. |
| Title: | How does investing in cheap labour countries affect performance at home? Firm-level evidence from France and Italy |
| Journal: | Oxford Economic Papers
2010 : APR, VOL. 62:2, p. 234-260 |
| Index terms: | labour markets labour costs manufacturing companies France Italy |
| Language: | eng |
| Abstract: | This paper examines how outward investments to developing and less developed countries (LDCs) affect home activities of French and Italian firms turning multinational during the analyzed period. These investments' effects are also compared to the effects of investments to developed economies (DCs). The analysis is performed by using propensity score matching. There is found no evidence of a negative effect of outward investments to LDCs. In Italy, there is a positive long term effect on value added and employment. For France, a positive effect is found on the size of domestic output and employment. |
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