Foreign Investors in The Netherlands: Heterogeneous Employment and Productivity Effects

Recent academic research suggests that the effects of inward foreign direct investment for productivity and employment may vary across foreign investors with different characteristics. Using a newly created dataset that integrates micro-level information from The Netherlands Foreign Investment Agency and Statistics Netherlands, this paper explores the role of several of these characteristics, including e. g. the country of origin, activities and tasks, age and strategic role of foreign affiliates in The Netherlands in the 2000-2007 period. Our analysis shows that important employment and productivity differences exist for nearly all these dimensions.