ABSTRACT

This chapter has two main purposes. The first is to describe the pattern of employment in terms of the plant characteristics, that is location, activity, country of origin, plant age and so on, and its relationship to investment. Second, it analyses the extent to which the jobs promised by the foreign investors are realised in employment and in place sometime after the investment. In the Inward Investment Dataset the prospective number of project jobs is observed in each year over 1985-98 for virtually all projects, but employment is observed only at 1999. The relationship between plant employment and project jobs is modelled under the assumption that firms do not experience unexpected events, so that employment changes smoothly over time, with project jobs adding to and being lost at constant rates over time, reflecting physical adjustment possibilities and the technical life of capital respectively.