How does overseas activity affect parent firm employment in newly advanced economies? Evidence from Taiwan

This study explores the effects of overseas activity on parent firm employment in Taiwan's listed firms during 2000-2005. Propensity score matching estimates of discrete effects suggest that employment growth did not differ significantly between new parent firms and firms with no overseas operations. Generalized method of moments' estimates of marginal effects for all firms indicate that a statistically significant and positive correlation exists between the size of overseas investment and parent employment after considering factors potentially influencing firm employment. However, this employment effect is negative for non-electronics parents with investment in China.