TITLE

Standort Deutschland: German Direct Foreign Investment -- Exodus of German Industry and Export of Jobs?

AUTHOR(S)
Tuselmann, Heinz-Josef
PUB. DATE
September 1998
SOURCE
Journal of World Business;Fall98, Vol. 33 Issue 3, p295
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
Against the background of the hotly debated issue of Germany `s attractiveness as a business location, the article assesses whether, and to what extent, the increased propensity of German companies to invest abroad indicates an exodus of German industry and has negative effects on domestic jobs. The paper reviews the German Direct Foreign Investment (DFI) position in the 1990s; compares it to those in other major industrialized countries, carries out a comparative evaluation of the cost and burden factors at the German location; examines the reasons underlying the DFI decisions of German manufacturing companies and the subsequent types of investment; and finally assesses their effects on domestic investment and employment The article ascertains that, in spite of the relatively unfavorable comparison of important cost and burden location factors, there are few grounds on which to connect the substantial increase in outward DFI in the 1990s to an exodus of German industry. The assessment supports the assertion that the net effect on domestic investment and German jobs has been positive.
ACCESSION #
1408883

 

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