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Multinationals, industrial relatedness and employment in European Regions

Cortinovis, Nicola, Crescenzi, Riccardo and Van Oort, Frank (2020) Multinationals, industrial relatedness and employment in European Regions. Journal of Economic Geography. ISSN 1468-2702 (In Press)

[img] Text (MNEs and employment in EU regions) - Accepted Version
Pending embargo until 1 January 2100.

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This paper investigates the link between multinational enterprises (MNEs) and employment in their host regions by cross-fertilizing 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 characterized 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:
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
Date Deposited: 16 Apr 2020 10:54
Last Modified: 28 Jun 2020 23:30

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