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Multinational enterprises, industrial relatedness and employment in European regions

Cortinovis, Nicola, Crescenzi, Riccardo ORCID: 0000-0003-0465-9796 and Van Oort, Frank (2020) Multinational enterprises, industrial relatedness and employment in European regions. Journal of Economic Geography, 20 (5). 1165 - 1205. ISSN 1468-2702

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Identification Number: 10.1093/jeg/lbaa010

Abstract

This article investigates the link between multinational enterprises (MNEs) and employment in their host regions by cross-fertilising the literature on MNE externalities with the emerging body of research on industrial relatedness. The link between employment and MNE presence in the same and related industries is tested for European regions. The results suggest that cross-sectoral MNE spillovers are mediated through industrial relatedness and that they are positively and significantly associated with higher employment levels, independently of input–output relations. Our results indicate that regions characterised by lower factor prices are likely to benefit the most from the presence of multinationals in terms of employment, but these benefits are concentrated in high knowledge-intensive sectors, potentially fostering inequalities within less-developed economies.

Item Type: Article
Official URL: https://academic.oup.com/joeg
Additional Information: © 2020 The Authors
Divisions: Geography & Environment
Subjects: H Social Sciences > HD Industries. Land use. Labor
H Social Sciences > HC Economic History and Conditions
JEL classification: O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development > O33 - Technological Change: Choices and Consequences; Diffusion Processes
F - International Economics > F2 - International Factor Movements and International Business > F22 - International Migration
Date Deposited: 16 Apr 2020 10:54
Last Modified: 20 Oct 2021 01:01
URI: http://eprints.lse.ac.uk/id/eprint/104063

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