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Economic Analysis: Theory and Practice
 

Employment at the U.S.-based enterprises of foreign companies

Vol. 16, Iss. 7, JULY 2017

Received: 28 April 2017

Received in revised form: 17 May 2017

Accepted: 9 June 2017

Available online: 27 July 2017

Subject Heading: ANALYSIS OF HUMAN CAPITAL

JEL Classification: J21, J24, J61, J62, O51

Pages: 1307–1316

https://doi.org/10.24891/ea.16.7.1307

Petrovskaya N.E. Institute for U.S. and Canadian Studies RAS, Moscow, Russian Federation
vitern@mail.ru

Importance The article examines employment trends at U.S.-based majority-owned affiliates of foreign companies.
Objectives The purpose is to conduct a comprehensive study of the role of foreign companies in the U.S. employment by industry and by state.
Methods The paper employs the systems approach, comparative analysis, economic and statistical methods. The calculations rest on the data of the Bureau of Economic Analysis Surveys of Foreign Direct Investment in the United States and financial and operating data of majority-owned U.S. affiliates of foreign multinational enterprises.
Results The analysis of employment trends at U.S.-based enterprises of foreign companies unveils their role in the U.S. employment, especially at the industry and state level. The manufacturing industry accounts for the largest share of employed, particularly, the car, food and chemical industries. The research contributes to the development of methodological approaches to analyzing the interconnections between foreign direct investments and employment in host countries. The findings may be useful for foreign direct investment policy shaping.
Conclusions and Relevance The research highlights interrelations between foreign direct investment and employment in host countries, and the influence of host country's FDI policy.

Keywords: employment, regional level, U.S. affiliate of foreign company private sector

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