What is it about?
Our paper analyzes what happens with the employment at in Estonia as a low-cost, medium-income transition economy when firms from Estonia invested abroad. The data from the population of Estonian firms between 1995 and 2002 are studied with regression analysis and propensity score matching method. Our results showed that after having invested abroad the employment of firms at home increased.
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Why is it important?
It shows that the logic of the outward investments from low-cost transition and developing economies differs from that of high income countries. The results indicate that in general, outward FDI positively affects home-country employment growth.
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This page is a summary of: The Effect of Outward Foreign Direct Investment on Home-Country Employment in a Low-Cost Transition Economy, Eastern European Economics, November 2008, Taylor & Francis,
DOI: 10.2753/eee0012-8775460602.
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