Chapter

The Effects of Overseas Investment on Domestic Employment

Tain-Jy Chen and Ying-hua Ku

in International Trade in East Asia

Published by University of Chicago Press

Published in print September 2005 | ISBN: 9780226378961
Published online February 2013 | e-ISBN: 9780226379005 | DOI: http://dx.doi.org/10.7208/chicago/9780226379005.003.0005
The Effects of Overseas Investment on Domestic Employment

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This chapter examines the relationship between foreign direct investment (FDI) and domestic employment at the firm level focusing on the manufacturing industry in Taiwan. The findings reveal that while overseas production leads to an increase in the domestic employment of managerial and technical workers it may also reduce the employment available to unskilled workers. The result also indicates that overseas production can lead to an expansion in input by reducing the cost of domestic production.

Keywords: foreign direct investment; domestic employment; overseas production; unskilled workers; domestic production; cost of production

Chapter.  9276 words.  Illustrated.

Subjects: Business and Management

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