scholarly journals The Impact of Globalization on Establishment-Level Employment Dynamics in Japan

2015 ◽  
Vol 14 (2) ◽  
pp. 41-65 ◽  
Author(s):  
Naomi Kodama ◽  
Tomohiko Inui

This study applies Davis, Haltiwanger, and Schuh's method ( 1996 ) to measure job creation/destruction rates of establishments in manufacturing firms using Japanese Economic Census data in 2006 and 2009. Results show that the decrease in net domestic employment arises mainly from firms without subsidiary companies, and non-expanding multinational enterprises. Domestic employment increases when the number of overseas subsidiaries increases. Both job creation/destruction rates of multinational enterprises are high, and the globalization of Japanese firms accelerates de-industrialization in Japan. The job creation and the net employment growth rates of establishments belonging to small-sized firms are lower than those in large-sized firms.

2021 ◽  
Author(s):  
Daniel Osuna Gómez ◽  

This paper estimates the impact of the capture of leaders of criminal organizations on the labor market in municipalities where these organizations operated between 2004 and 2006. The difference-in-difference analysis compares different employment outcomes in cartel locations and the rest, before and after the capture of cartel leaders. The results show that captures caused a decrease in nominal wages and paid employment in cartel municipalities. Using Economic Census Data, I find that captures also caused a fall in the number of establishments and had a negative impact on other establishment outcomes. This document focuses exclusively on the impact of the capture of leaders of criminal organizations on the labor market until 2011 without studying other possible consequences, and thus does not make an integral assessment of this policy


Author(s):  
Daniel Crown ◽  
Timothy Wojan ◽  
Anil Rupasingha

Abstract This article estimates the employment spillover effect of high-growth businesses on establishment-level employment growth. We assess whether the impact depends on the rurality of the region, and whether nearby establishments are high-growth businesses themselves. We also estimate the within-industry impact of high-growth establishments (HGEs). The findings show no impact of HGEs on net employment growth, due to equal gross job creation and job destruction on average. However, we find that within the same industry, HGEs contribute to positive net employment growth, with large and nearly equal impacts on existing HGEs across both Metropolitan Statistical Areas regions and non-metro counties.


2015 ◽  
Vol 14 (2) ◽  
pp. 1-35 ◽  
Author(s):  
Mitsuyo Ando ◽  
Fukunari Kimura

Does outward foreign direct investment accelerate de-industrialization at home or generate domestic jobs and operations? This paper applies the job creation (JC)/destruction (JD) method to micro data of Japanese manufacturing firms and provides a bird's eye view of the dynamism of globalizing firms in terms of domestic employment, domestic establishments, domestic affiliates, exports, and imports. It examines gross and net changes in domestic operations by multinational enterprises (MNEs) that expand operations abroad (expanding MNEs), compared with non-expanding MNEs and local firms, for the periods of 1998–2002, 2002–06, 2006–08, and 2008–10. It also conducts the Kolmogorov-Smirnov test to investigate whether the changes in domestic operations and trade by expanding MNEs are larger than those by other firm types. Major findings are the following: (1) gross changes in domestic employment and domestic operations are much larger than net changes, showing restructuring dynamism and firm heterogeneity; (2) de-industrialization or the shrinkage of the manufacturing sector is not relevant except for the period 1998–2002, though a slight declining trend in manufacturing activities is observed in recent years; (3) expanding multinational small- and medium-sized enterprises (SMEs) tends to enlarge domestic employment and domestic operations, compared with other types of SMEs; (4) expanding MNEs intensify headquarters activities; and (5) expanding multinational SMEs are likely to expand exports and imports more than other types of SMEs.


2018 ◽  
Vol 12 (1) ◽  
pp. 19-34 ◽  
Author(s):  
Chao Zhou

Purpose This paper aims to test the internationalization–performance relationship based on data of Chinese firms and the impact of firm size on the internationalization–performance relationship. Design/methodology/approach This paper uses overseas subsidiaries as a percentage of total subsidiaries to measure the degree of internationalization. As the overseas subsidiaries and total subsidiaries data of Chinese A-share listed firms are not available in any existing databases, the author hand-collected information on subsidiaries of Chinese A-share listed manufacturing firms from their annual financial reports during 2001-2014. The basic accounting and market information is collected from the China Stock Market and Accounting Research Database. This paper finally gets 535 manufacturing firms. Findings The empirical results suggest that the internationalization–performance relationship is W-shaped in overall samples, but varies with firm size. Specifically, the internationalization–performance relationship is W-shaped in small firms and U-shaped in large firms. Research limitations/implications Future studies based on unlisted Chinese firms or other measurement of internationalization may provide further understanding of the internationalization–performance relationship. Practical implications Policymakers should help small firms prepare a long-term internationalization strategy, giving more support for small firms in the first and third phases of internationalization and helping them to reach the second and fourth phases. Policymakers should also pay more attention to limit the aggressive internationalization behavior of large firms. Originality/value This study provides new evidence for the internationalization–performance relationship by using the unique longitude sample from China and the unique measurement of internationalization. We also highlight the importance of firm characteristics in the examination of internationalization–performance relationship, which provides a potential explanation for previous mixed evidence.


2017 ◽  
Vol 55 (2) ◽  
pp. 530-557
Author(s):  
Elizabeth A. Mack ◽  
Kevin Credit

Inner city revitalization efforts centered on fostering new business activity are controversial because they assume that the job creating capacity of new businesses is capable of impacting aggregate employment levels in inner city neighborhoods. Given this controversy, this article examines the link between new business activity and inner city employment growth in Phoenix, Arizona. Analytical results highlight job creation from new business activity but a net negative association between new business activity and employment growth stemming from the loss of jobs from large employers in inner city neighborhoods. This relationship highlights that encouraging new business activity is not necessarily a bad idea for local residents and customers, but should not be viewed as a panacea for all inner city problems. Instead, new business activity should be viewed as one component of multifaceted initiatives to revitalize inner city neighborhoods.


Urban Studies ◽  
2020 ◽  
pp. 004209802091215
Author(s):  
Liang Zheng

This article utilises economic census microdata to examine the impact of state-owned enterprises (SOEs) on the employment growth of manufacturing industries in Chinese cities between 2004 and 2008. The main findings show that the presence of SOEs inhibits employment growth in the manufacturing industry. Using the historical landscape of SOEs as an instrumental variable, our findings underscore that the overall impact of SOEs remains negative. This study then explores three potential mechanisms underlying this negative relationship. First, SOEs appear to have no significant impact on knowledge spillovers in their own industry. Second, SOEs tend to hinder the entry of new privately-owned enterprises (POEs) into the marketplace. Third, SOEs are generally less productive than POEs. The article also provides new evidence about dynamic externalities theory: the employment growth rate of manufacturing industries is higher in cities, with a substantial number of rivals in their own industry.


2020 ◽  
Vol 12 (17) ◽  
pp. 6869
Author(s):  
Chong Wu ◽  
Siyi Bo ◽  
Xing Wan ◽  
Min Ji ◽  
Meihua Chen ◽  
...  

The relationship between the strategic choice of internationalization under institutional duality and the performance of emerging market multinational enterprises (EM-MNEs) will become a focal point for scholars, practitioners and policy makers in the future. In order to better understand the determinants of the entry mode choice under institutional duality for EM-MNEs, based on the sample of Chinese manufacturing listed companies ‘going out’ from 2003 to 2015, we investigated the impact of organization institutional inertia and host-country institutional quality on the choice of the international joint venture (IJV) of Chinese manufacturing firms, as well as the effect and potential problems of the IJV choice on the firms’ innovation performance under institutional duality. The main results of our empirical analyses provide evidence that the response to institutional duality means that Chinese firms have the possibility to choose IJV in entry modes ahead of their capability support, and subject to insufficient professional field accumulation, cross-cultural management and joint governance capability, this premature choice of IJV actually hinders their innovation efficiency. Furthermore, the test on the influence of firm heterogeneity found that, when the firm is privately owned or has a lower internationalization breadth, the above negative moderating effect of IJV choice is more significant. Our findings enrich the literature on the relationship between the strategic choice of internationalization and innovation performance of EM-MNEs, and provide inspiring and straightforward empirical evidence.


2014 ◽  
Vol 22 (1) ◽  
pp. 59-77 ◽  
Author(s):  
Jiyul Choi ◽  
Byung Il Park

Purpose – The aim of this paper is to empirically analyze the extent of the impact stakeholders' pressure has as a determinant of multinational enterprises' MNEs' local environmentally responsible management (ERM), aiming to contribute to the interlocution with stakeholders and ERM strategy establishment of MNE subsidiaries. Design/methodology/approach – To identify key stakeholders, ordinary least squares (OLS) regression analysis was used. The data were collected from 300 foreign subsidiaries established by Korean MNEs from August to December 2012. Findings – The results show the parent company (as a major internal stakeholder) and government, NGOs and media (as external stakeholders) are major factors that promote ERM by subsidiaries. Stakeholder theory provides a comprehensive understanding about stakeholders' pressure as a force to engage overseas subsidiaries with environmental responsibility. Originality/value – The research contributes to environmental and international business literature by investigating antecedents of ERM of overseas subsidiaries. A stakeholder perspective is used as an overarching theory in order to develop an ERM framework.


2019 ◽  
Vol 49 (4) ◽  
pp. 751-776
Author(s):  
Rosa Forte ◽  
Rúben Ribeiro

Abstract Although not a recent phenomenon, offshoring has assumed increasing importance in terms of multinational enterprises’ activities, often being the subject of discussion at the political level, especially in more economically developed countries, which tend to suggest that this phenomenon underlies the poor performance of job creation in these economies, contributing to the relocation of jobs. Despite the increasingly numerous and comprehensive studies, findings insist on presenting rather different ideas concerning the effects on home countries’ employment. Therefore, taking into account the lack of relevant work in this area focused on the Portuguese reality, it is pertinent to bridge this gap, positively contributing to the enrichment of the existing literature and to a better understanding of the effects of offshoring on employment in Portugal. Based on a sample of 14 sectors of the manufacturing industry during the 1995-2009 period, our results suggest that offshoring has a positive but small impact on home country’s employment in the Portuguese case. This result may indicate that due to higher sales induced by productivity gains from offshoring, this contributes to the creation of a greater number of jobs than those who are relocated abroad.


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