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FDI Perspective No. 148: “Outward FDI does not necessarily cost domestic employment of MNEs at home: Evidence from Japanese MNEs,” by In Hyeock Lee, Shige Makino and Eunsuk Hong

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Outward FDI does not necessarily reduce domestic employment — it often boosts it. Evidence from Japanese MNEs show that they increase domestic employment in Japan when they conduct market-seeking, strategic asset-seeking, or efficiency-seeking FDI to expand domestic operations into foreign countries, and hence enhance their competitive advantages.

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